Document date: 00/00/0000

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File #:

62-110-116464

Serial Scope:

280-290

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The Attorney General

2

Mr. J. A. Mintz

(1 - J. B. Hotis)

1 - Mr. W. R. Wannall

1 - Mr. W. 0. Cregar

January 14, 1976

Birector, ISI

U. S. HOUSE SELECT COMMITTEE

ON INEELLIGENCE ACTIVITIES (HSC)

1 - Mr.

J. G. Deegan

1 - Mr.

A.

J. Buffin

1 ~ Mr. V. R. Thornton

1 - Mr. R. D. Shea

Ferne i made in Hit latter date Tender 3, e

1975, which requests access

• to any ane all files, memorandud

or other files regarding the following: (1) Jesse Benjamina ") l

Stoner, Chairman; National States Rights Party (NSRP); (2) ; 15\

"The Thunderbolt" and the subscribes list thereto.

This is.

the MERl publication: (3) The NSBP: (4) Carl W. Eidoul

member of NSRP; (5) John Mercer Johns - member of NSR

(6) Vernon Higgins (Detroit, Michigan).

Enclosed for your approval and forwarding to the

ISS is the original of a memorandum responding to the abov

request.

UNREC-COPY

A copy of this memorandum is being furnished for

your records.

Inclosures (2)

12-111.

:

sizen.

210

62-116464

I - Deputy Actorney General

Attention:

Michael E. Shaheen, Jr.

Special Counsel for

SOUNDI

Intelligence Goordination

FEB 6

1976

Assoc. Did.

Dep. AD Adm.-

Dep. AD Inv.

-2

Asst. CHr.:

Admin. -

1

5105-66233

Comp. Syst, -1. =: 157-97.

•Ext. Affairs -

iles & Com. I1 --157-1228 14

-157-3151

Ident.c

Inspection - 1

- 170-6412

Intell. -

Laboratory -

pion. & Eval. -RDS: klmp-in

Spec. Inv._

Training -

(17)

(Legal Coun. -

¡ Telephone Rm. -

MAIL ROOM L

864 HEBra 197939710

Page 2

5-

SEE NOTE PAGE 2

TELETYPE UNIT C

GPO: 1975 0 - 569-920

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## Page 3

The Attorney General

NOTE:

In regard to HSC's request set forth in their letter

12/1/75, FBIHQ files disclose that we have approximately 96

volumes pertaining to the National States Rights Party (NSRP).

These volumes consist of numerous internal memoranda, reports,

letterhead memoranda, as well as numerous miscellaneous corre-

spondence pertaining

to "The Thunderbolt" which is the publication

for the NSRP. Also, there are approximately six volumes

pertaining to Jesse

Benjamin Stoner, which contain numerous

reports, letterhead memoranda and internal memoranda as well as

other miscellaneous pieces of correspondence.

We have one volume

pertaining to Carl W. Ridout, onevolume on John Mercer Johns,

and one volume on Vernon Higgins, which is a 170 classification

(extremist informant), Office of Origin Detroit, and is in a

closed status.

He was approved as a potential extremist informant

on 7/23/73, and elevated to a full extremist informant on 3/27/74.

He furnished information on the United Klans of America.

He was

discontinued on 6/20/74 for the reason that on 6/19, 20/74,

upon confrontation by Nation Caucus of Labor Committees (NCLC)

personnel, Detroit, admitted to them serving as a Bureau informant

which thereafter resulted in his public exposure through NCLC

media. This exposure terminated any further capability of

Higgins functioningas a Bureau informant. NCLC is currently

under investigation by the Bureau as it is a revolutionary

socialist organization which aims to over-throw the U. S. Govern-

ment by force and replace it with a communist form of government.

In view of the immensity of this material, the conference between

SA Duffin and Staff Member Oliphant was necessary in order to

place this particular request into its proper perspective. The

following personnel of IS-1 Section will brief Staff Member Oliphant:

Section Chief Joseph G. Deegan and Supervisor Vernon R. Thornton.

- 2 .

HH 55318

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62-116464

2 - Mr. J. A. Mintz

(1 - J. B. Hotis)

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

1 - Mr. J. G. Deegan

1 - Mr. A. J. Duffin

January 14, 1976

1 - Mr. V. R. Thornton

1 - Mr. R. D. Shea

U. S. HOUSE SELECT COMMITTES

OUT. INTCLLICINICE ACTIVITIES (HSC)

Reference is made to HSC letter dated December I,

1975, which requests access co any and all files, memorandun,

or other materials concerning the folloving:

(1) Jesse Benjamin

Stoner, Chairman; National States Rights Party (NSRP); (2)

"The Thunderbolt" and the subscriber list thereto,. This is

the ISRP publication; (3) The NSRP; (4) Carl I. Ridout - member

of NSRP; (5) John Mercer Johns - member of NSR?; (6) Vernon

Higgins (Detroit,

lichigan).

On January 8, 1976, a conference between Special Agent

Andrew J. Duffin of the FBI and ISC Staff lember Tinothy Oliphant

was held

regarding the material mentioned above. As a result

of this conference, it was agreed that an oral briefing tould

satisty this request.

This is to advise that TBI Headquarters

representatives familiar with this naterial are prepared to

provide same at the HSC's convenience.

I] - The Attorney General

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -1-105-66233

Asst. Dir.:

Admin.

1 - 157-97

Comp. Syst, _

Ext. Affairs

- 157-1228

Files & Com. _ ]

-157-3151

Gen. Inv.-

Ident. _

-1 - 170-6412

Inspection -

Intell.

Laboratory _

RDS:kImk.

Plan. & Evol. -

(16)

Spec. Inv. _

Training -

Legal Coun. -

Telephone Rm. -

Director Sec'y -

MAIL ROOM E

HH 55318

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wils

ORIGINAL, AND ONE TO AG

11:464-290

GPO: 1975 0 - 569-920

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## Page 5

ROBERY 18, GIAIMO, RONY

JAMES V. STANTON, OHIO

MONA: D V. DELLUMS, CALIF.

MORGAN F. MURPHY, ILL.

LES ASPIN, WIS.

DALE MILFORD, TEX.

•SLIP H. HAYES, IND.

WILISAM LEHMAN, FLA

DAVE, TREES, LICE

:. TREEN. LA

jAMES I, JOMNSON, COLO.

HOUER'T W. KASTEN, JM., WIS

•A, BEARLE FIELD, STAFF DIRECTOR

AATON D, DONNER, COUNSEL

TELETHONE: (202) 225-9751

Select Committee on Intelligence

C.5. House of Representatibes

¿Washington, 2.C. 20515

December 1, 1975

:

Mr. Michael Shaheen, JI.

Spec. Counsel for Intel. Coordin.

Department of Justice

Washington, D.C.

Dear Mr. Shaheen:

The House Select Committee hereby requests access to

any and all files, memorandum or other materials re:

1) Jesse Benjamin (J.B.) Stoner (DOB) April

13, 1924, Chairman; National States Rights

Party.

2) The Thunderbolt and the subscriber list

thereto (publication of the National States

Rights Party)

3) The National States Rights Party

4) Carl W. Ridout of Birmingham, Alabama

member -- National States Rights Party

5)

. John Mercer Johns of Jacksonville, Florida -

--member - National STates Rights Party

6) Vernon Higgins (Detroit, Michigan)

Sincerely,

cand tied

A. Searle Field

Staff Director

1131

RECEIVED

110

1375

236381-4-1

R

cd 4 1975

NAM

114

02-1161

HH 55318 DocId:32989710 Page 5

AAR.

OFFICE DE LEGISLATIVE AFFAIRS

DEPUTY ATTORNEY GENERAL

---

## Page 6

5-140 (Rev. 1-21-74) FEDERAL BUREAU OF INVESTIGATION

WASHINGTON, D. C. 20535

Addressee:

HOUSE SELECT COMMITTEE

GLER

C& LHM [ Memo

• Report dated _ 1/14/76

Captión of Dormen HOUSE SELECT COMMITTEE.

12/1/75 request

National States Rights Party

62-116464-290

14 55318 DooId: 32989710

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## Page 7

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

TO :

Intelligence Community Staff

ATTN: Central Index

CLASSIFY AS APPROPRIATE

FROM:

FBI.

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW PROVIDED (check

appropriate

term.

If a document was made available

for review but not transmitted, so note.)

* DOCUMENT |

BRIEFING

INTERVIEW

TESTIMONY

OTHER

2. DATE PROVIDED

1/14/76

3. TO WHOM PROVIDED (check appropriate term; add specific names if appropriate)

SSC

IDENTIFICATION (provide

data for documents; dive name or identification number of briefer,

interviewee, testifier and subject)

Memorandun

Wise sponse to frise date and aman mer at ve, esponse to formal request, other.

f (name), initiative

HSC letter 12/1/75

• KEY WORDS Center the appropriate key words from the list provided separately; if key words not listed a.

'ed underline for emphasi:

Infornation handling

8. SUMMARY (see reverse side before completiné this item)

Matetials requested but a briefing was afforded to HSC Staff

Merbers regarding Jesse Benjamin Stoner, chairman; National

States Rights Party; "The Thunderbolt: and the subscriber 11st

thereto; The Nacionas Scates Rights Party; Carl W. Ridout; John

Mercer Johns; Vernon Higgins.

62-116464

FMK: fmk

(4)

ORIGINAL VIA LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY

TREAT AS VELLOW

CLASSIFY AS APPROPRIATE

sing

379 | 16-751

14 55318 DocId: 32989710 Paye Y

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## Page 8

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

• "FROM" entry should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate. Any feedback or evidence of investigatory interests

should be noted. Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required. Additional

pages may be attached if necessary.

HH 55318

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## Page 9

2 - II. T.

71intz

(1 - 12

/• B. Hotis)

1 - Mir. W. R. Hannall

1 - 1x. F. 0. Crogar

1 - Hir. I. W. Porter

222

7 Con0rad

NORNORy 13+ 3970

712]

Ci

FCEIVIAICS (22C)

Vi.

Gos pares commar o ferree

(SC)

Pefcarter 10 Dale to aur ra crarau: of Forterior 29%

1279, €0 e OCC.

scoporcod to en toc sogscat os

conconce un, 3974x for intoration aront concatsc trrgeto

os DurtoncLicua entrico contustar la tus tat; and cor

--arandas of lozaruor 3, 1075e to tro Pocy mach Icorardco

ochor tronnaeco condacted by thr Int basocen 1920 and 1075.

#clases for yope epproval and torrosding io tho

ropociivo comietona ara the originalo of tuo retorando.

chic caud data burnichod araricualy to tho 9SC and HCC.

"con oc eran torcionias to cnelodc. for your

62-116399

22-116001 (House Select Committee)

6 1іій

Simaty actorncy, Caaseal

HOT

*Cionties:

71choca I, chaloon, Tr 170 2016

Erichos Counoel fox

Intolliyenes reorlination

i

HHP sen

(10)

ENCLOSURA

SEE NOTE PAGE 2

/0JAN 26 1976

HH 55318

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## Page 10

The ALtorney Genoral

NOTE:

Our maroranda of 9/23/75, and 11/5/75, to the

sse and ase, respectively.

furnished data concerning

surreptitious ontrics against domestic targets,

breal-ins, and other trespassos. Since preparation of

those menoranda, ve have discovered ontries which amand

data given to the sSc and HSC.

Those reporanda serve

to rcyise those furnished previously.

Menorandun to the SSC concerns an October, 1963,

entry into the lew York City offices of the Fair Play for

Cuba Conmittee

licnorandun to the HSC concerns entrios

conducted in the SHOOD natter.

Our response to the

SSC and ISC diffor since previous submissions to those

co-mittees respondod to different questions.

HW 55318

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## Page 11

2 - Mr.

Mintz

(1 -

J. B. Hotis)

1 - Mr. W.

R. Wainall

1 - Mr. W. O. Cregar

1 - Mr. H. W. Porter

62-116461

January 13, 1976

U. S. HOUSE SELECT COMMITTEE ON

INIELIIGENCE ACIIVITIES (HSC)

RE: HSC REQUEST DATED OCTOBER 15, 1975,

CONCERITING VARRAITLESS ELECIRONIC

SURVEILIANCES AND SURREPTITIOUS

EXERIES

Reference is made to the ISC letter of October 15,

1975, to the Department of Justice which requested, under

Items 3 and 4, a list of all break-ins conducted by the

FBI between 1970 and 1975, and a list of all other trespasses

conducted by the FBI between 1970 and 1975, respectively.

Under Number 4 of our memorandum of November 5,

1975, with attachnent, we combined response to the

October 15, 1975, requests under Items 3 and 4.

since preparation of our memorandum of November 5,

we have learned of one target of surreptitious entry, in

1970 and 1971, not included in the November 5, Item 4,

response. Accordingly, the Item 4 response should be

anended to show in the category

• "Foreign Intelligence

Agents" one target of surreptitious entry in 1970 and

1971.

1 - The Attorney General

HWP :en. lit

(8)

Assoc. Dir

Dep. AD Adm..

Dep. AD Inv.

Asst, Dir.:

Admin.

Comp. Syst.

Ext. Affairs.

Files & Com.

Gen. Inv. -

Ident.

Inspection

Intell.

Laboratory

Plan. & Eval. m

Spec. Inv.

Training -

Legal Coun.

Telaphone Rm. -

MAIL ROOM E

" HH

Dir so Ste - Docia: 32989710

int.

This document is prepared in response to a parent and in not for dragemin

nation ostside gor 'Commer.

your Committee and ihe contest may s:

proceedings by

not without the express approval of the t'Bi' wid to intorized persora-

10.11:y14

TELETYPE UNIT O

Page 11

GPO 954-516

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## Page 12

5-140 (Rev. 1-21-74) FEDERAL BUREAU OF INVESTIGATION

WASHINGTON, D. C.

20535

House Select Committee

Addressee:

DILTR

& LHM

• Memo

_ Report dated -

1/13/76

¿Caption of Document: HSC request dated 10/15/75 concl

warrantless electronic surveillances and

surreptitious entries. Items 3 & 4.

Received by:

465 recoles to the labelligence Division, Fal

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## Page 13

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

TO :

Intelligence Community Staff

ATTN: Central Index

CLASSIFY AS APPROPRIATE

FROM:

FBI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW PROVIDED

(check

appropriate

term. If a document was made available

for review but not transmitted, so note.)

DOCUMENT BRIEFING

' INTERVIEW 1

I TESTIMONY

OTHER

2. DATE PROVIDED

1/13/76

3. TO WHOM PROVIDED (check appropriate term; add specific names if appropriate)

SSC

HSC

4. IDENTIFICATION (provide descriptive data for documents; five name or identification number of briefer,

interviewee, testifier and

subject)

Memorandum

5. IN RESPONSE TO (list date and item number

if in response

to formal request, other.

wise state

verbal request

of (name),, initiative,

subpoena,

etc.)

SSC request 9/22/76

7. KEy under finteror empharapriate key words from the list provided separately;

if key words not listed are

for emphasis)

Intelligence Collection

Operating Procedures

'8. SUMMARY (see reverse side before completing this item)

Furnished infornation regarding one additional domestic

subversive target of a surreptitious entry, amending figures

furnished by FBI memorandum 9/23/75.

62-116395

62-116464

AJD: 1hb

(5)

ORIGINAL VIA LIAISON TO CENTRAI, COMMUNITY INDEX

IN CONNECTION WITH SENSTUDY 75 AND HOUSTUDY 75.

379 | (6-751

NW 55318 DocId:32989710 Page 1ß

CLASSIFY AS APPROPRIATE

---

## Page 14

'INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

"FROM" entry should clearly identify the organization providing the

information.

If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the oxiginal abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate.

Any feedback or evidence of investigatory interests

should be noted. Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here, •

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is reguired. Additional

pages may be attached if necessary.

HH 55318

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## Page 15

coit: int

The Attorney General

Director, FBI

U.S.

HOUSE SELECT CONMITTEE

ON INTELLIGENCE ACIIVITIES (HSE)

1 - Mr. J. B. Adams

2 - Mr. J. A. Mintz

(1 - Mr. J. B: Hotis)

1 - Mr. H. N. Bassett

January 28, 1976

1 - Mr. W. R. Wannall

1

- ME.

R.

I. Shackelford.

- Mr.

• F. J. Cassidy

~Mr. W. 0. Cregar

1 - Mr. T. J. McNiff

In response to the January 25, 1976, request oi

lit. Rex Lee, Assistant Abtorney General, Civil Division,

this Bureau,

with your approval, furnished Captain John

Hathney, Mational Security Council Staff, Situation Room,

White House, by letter that same date, synopsized write-ups

concerning those natters appearing in

the ISC's Draft Final

Report which, upon initial review by this Bureau, were

found to be gross misstatements of tact or false conclusions

A copy of the letter and each of the write-ups is being iu-

nished to you as enclosures to this letter for your records.

Also enclosed for your approval and forwarding

to Captain John Mathney, supra, is a letter containing

additional vrite-ups setcing forth this Bureau's position

A COpy OE tha labor

enclosures, is being furnished for your record&

Enclosures (19)

62-116464

ENCLOSUR!

]

wise

The Deputy Actorney General

Attencion:

Michael E. Shaheen, Ji.

Special Counsel for

Assoc. Dir.

Dep. AD Adi

Intelligence Coordination

Admin.

Comp. Syste

Ext. Affairs _

Files & Com. -

Gen! Inv. -

Ident.

Inspection

Intell.

Laboratory

Plan. & Eval. -

Spec. Inv. -

Training

Legal Coun

elephone Rm. di

TJM: 1Kb/ jmn min

113).

conn

€ FEB 5 1976

W

SEE NOTE PAGE 2

fun

*MAIL ROOM L

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## Page 16

The Attorney General

NOTE:

On 1/26/76, Assistant Attorney General Rex Lee

cequested chat this bureau turnish Captain Mathney with

'nut shells rebuttals of "meaty" inaccuracies and conclusion:

appearing in the HSC Draft Final Report.

Personnel in the

Intelligence, Inspection,

and General Investigative Divisions

prepared material in compliance with the above request.

Administrative Division declined input as it was not believed

inaccuracies pertaining to functions of that Division were

of "meaty" quality warranting rebuttal. Material, after

approval by the Attorney General, was delivered to the

White House the evening of 1/26/76.

When reviewing the above material for approval,

Mr. Adams, Deputy Associate Director, noted that the above

rebuttal material concerned itself only with specific

sentences or paragraphs extracted from the HSC report.

Mr. Adams noted that the entire tenor of the report indi

cated that the HSC has "missed the boat" concerning FBI

functions and operations, and he instructed that material

be prepared in a succinot but elucidative form pointing

out HSC misconceptions promulgated in the report as it

relates to specific areas of this Bureau's operations.

i

-2=.

55318

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## Page 17

..

1 - Mr.

J. B. Adams

2 - Mr. J. A. Mintz

(1 - Mr.

J. B. Hotis)

1 - Mr.

H. N. Bassett

1 - Mr.

W. R. Wannall

1

- Mr.

R. Is. Shackelford

- MI.

F. J. Cassidy

- Ms.

W. 0. Cregar

1 - Ms. T. J. MCNiff

02-116464

Dato:

to?

January 28, 1976

Captain John Hathney

lational Security Council State

Situation Rooz

White Fouse

Fron

Clarence I. Kolley, Director

Subject:

". S. HOUSE SELECE CONCITTEE

ON ENIELEIGSICE ACTIVITIES (ASC)

Roference is made to my lettor to you dated

January 26, 1976, captioned as above, which letter

Forarded to you

synopsized write-ups concerning those

matters in the ISC Draft Final Report which nactors

this Bureau believes to be gross misstatenonts of faci

or falso conclusions.

Actached for your inforation, and in further

ance of the purpose of referenced letter, are four trite

ups sotting forth this Bureau's position with regard to

cartain invostigations, programs, and administrative

_ENCLESURE

proccauses mhich this Duceau balieves vere inaccuracely

described in the abovententioned

SC DINEE IINAL NADOLE•

Enclosuros (4)

EX 103

161902-16444

2

8.9

& FEB 5 1976

I - The Attorney General

TJM : 1hb/ jmn

(13)

jmh

pisi

Assoe. Dir. -

Dep. AD Adm. -

Dep. AD Inv. - NOTE:

PLM

Asst. Dir.:

Admin.

Comp, Syst.

See letter to the Attorney (General, same date and

Ext. Affairs

caption as above.

AAG Rex Lee has instructed that material

Files & Com. - rebutting that information appearing in the HSC Draft Final

Ident.

- Report should be made available to Mir. Mathney as soon as

Inspection _

possible.

Intell.

Laboratory

Plan. & Evo

Spoc. Inv.

ENCLOS

Training

He 828-16

Legal Coun..

intern.in

SARAG.

Telephone Rm.

Director Sec

HH 55312

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## Page 18

c.".

HDUSE SCLECI GOLSITITRE FIJAL ROPOZO

U. S. NECORDIIE CHLPINY

1 11.'x 289

HH

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## Page 19

HOUCE SELECT COMMITTEE FINAL REFORT

Pages 34-35

This section is entitled "An Attack Averted, " and alleges that

the FBI intended to hunch an attack to discredit the Committee following

an interview of a Committee witness, Martin L. Kaiser, in which Kaiser

had furnished a signed statement recanting portions of his testimony before

the Committee. A Committce press release was made December 31, 1075,

as shown in the report to head off any "TBI leal, "

The facts are that there was no "attack" made or contemplated

and the "leak" of the interview of kaiser was made by the Committee on

December 8l, 1975, as shown in the report.

Kaiser was interviewed by FBI Agents on Docember 15, 1975,

concerning purchases from U.s, fecording Company, and during the

interview Kaiser stated that he prepared a statement for the flouse select

Committee prior to his testimony October 9, 1975, and that in this state-

ment, which he prepared, he made no comment about a 30% markup on a

sale from U. S. Recording Company to the FBI as he believed a 30%

markup was reasonable. When he arrived to testify, he was handed a new

statement which had been changed from the one he prepared himsolf.

Saiser furnished copies of the two statements which were reviewed at a

later date and substantial differences were observed.

Kaiser was reinterviewed December 23, 1975, to clarify these

differences and to determine whether the second statement contained his

own views. Kaiser furnished a written statement recanting cortain portions

of his testimony. This information, as well as affidavits furniched by the

interviewing Agents denying that any pressure was used to obtain Raiser's

statement, has been furnished to the Attorney General.

Jalser cormentud dering tils Interrien that shes to sond tha

nor coatoricot bonded to blu bye Concatco Avaull sior, it poo "erst

121 cap," and to contracd this in him doggeden to the Cone Wro

that he had made such a statement when interviewed on December 43, 191o.

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## Page 20

HOUSE SELECT COMMITTEE FINAL REFORT

Fage 83

The report alleges that a middloman who is a close friend of

top FBI officials tacked onto covert purchases unwarranted markups

amounting to thousands, if not millions, of dollars.

The statement is not factual as there is no evidence in the report

to support the claim of "unwarranted markups" and there are no unvarranted

markups known on any FBI purchases.

The statement that the markuss

amounted to "thousands, if not millions" is evidence of the fact that there

is no support for the statement. Il the Committee has such evidence it

should be so stated in a factual manner in the regori.

HW 55318

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## Page 21

HOUSE SELECT COMMITTEE FINAL REPORT

Pages 131 and 133

The report Charges "There was virtually no control exercised over

the confidential contracts between U. S. Recording to the FBI" (page 131),

and that the "ISI's use of U. S. Recording represents a grossly ineificient

expenditure for intelligence equipment" (page 133).

The report contains no facts to back up these statementa.

The facts are that the FBI began making purchases of certain sensitive

technical equipment under confidential arrangements with this company many

jears ago to preclude hostile foreign intelligence services from learning the

type of equipment which the FBI uses. This procedure is provided for in the

Federal Property and Administrative Services Act of 1949, Section 302, (c) (12),

which permits an exception to advertising for purchases and contracts when

"the agency head determines that the character, ingredients or components

thereof are such that the purchase or contract should not be publicly disclosed."

Purchases by the FBI from U. S. Recording on a contidential basis were

therefore clearly within the law. In regard to the statement that this was

inefficient, the Bureau began using this company on a confidential basis only

after many years of experience with this company, during which time good

service was furnished and it was generally believed that there was no other

company in the Washington, D. C., area that would have given the FBI better

service.

In addition, U. S. Recording Company was a distributor for many

manufacturers in the sound recording business and as such had the lowest

price for items from these manufacturers. When an item was on the General

Services Administration (GSA) schedule of items to be purchased at a standard

Federal price, U. S. Recording charged the FBI the same price as was on

the GOA schedule. Cnly when U. S. Recording had to purchase an item from

a company for which it was not a distributor would the price be higher than

it would have been if the item was purchased directly. In these instances the

FBI received various services from U. S. Recoraing such as delivery,

technical advice, adjustment and service warranty, or adjustment for defective

equipment, as well as confidentiality concerning the purchase. By using a

local, reliable company the FBI also obtained economies in time and manpower,

and these factors can be critical and vital to an investigative operation.

55318 DocId: 32969710 Page 21

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## Page 22

"fe"

-

While the markup on any item is generally not known under any'

normal purchasing procedure, the price paid by the FBI was reviewed by both

the Procurement Section of the FBI and the Laboratory Division, which is

fully knowledgeable of equipment and prices, so that a system existed to

insure that full value was received for expenditures made.

55318 DocId: 32989710

Page 22

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## Page 23

HOUSE SELECT COMMITTEE FINAL REPORT

Re: Counterintelligence Programs (Cointelgros)

After months of investigation, briefings by FBI officials,

and access to official documentation, the Committee staff has pro-

duced seven sentences of sweeping condemnation of the discontinued

Counterintelligence Programs (Cointelpros), This cursory review,

and its accompanying footnotes, are replete with technical and factual

errOrS.

The program objectives themselves are erroneously identi-

fied in the report as "identifying, penetrating, and neutralizing

subversive elements" in disregard of two years of official public

characterization of the effort to expose, disrupt, and neutralize a

variety of domestic and foreign subversive, extremist, revolutionary

and violence-prone elements. Cointelpro is described as consisting

of "myriad clandestine dirty tricks," ignoring the thorough review of

the Department of Justice which concluded "the overwhelming bulk of

these activities were clearly legitimate and proper undertakings

within the scope of the FBI's ongoing responsibilities..." The report

gratuitously accused the FBI of "racism, bias and strong conserva-

tive ideology. " While describing all Cointelpros as an "aberration!'

the Committee fails to identlly several, jumbles the titles of others,

and bases its accusation on five examples extracted from only two

programs and over 3, 000 proposals. The House Select Committee

report is unique, as it relates to FBI Cointelpros, In its disregard

al accuracy, informative information and objectivity.

DR:1fj

(10)

11: 6-28.19

NH 55318 DocId: 32989710 Page 23

ENGLOSING

---

## Page 24

HOUSE SELECT COMMITTEE (HSC) FINAL REPORT

SOCIALIST WORKERS PARTY

The section of the HSC report dealing with the

Socialist Workers Party (SWP) cites the FBI's investigation of

the SWP as an example of a continuing unproductive investigation.

It attempts to portray the SWP as a legitimate American political

party that even runs a candidate for president. This report

jails to point out that the FBI does not investigate all

socialists but only those who are communists. The distinguishing

characteristic of the SiP from other socialist groups not

investigated by the FBI is that the SWP is a Irotskyist-communist

organization which originated as a splinter group from the

Communist Party.

The Committee has not taken into account

the number of written documents on the SWP which have been

furnished by the FBI.

The following are statements furnished by the

FBI to the HSC which appeared in "The Militant," official

SWP newspaper, on November 7, 1975:

"The Marxist model for constructing a

revolutionary program on the imperialist

epoch is the founding document of the

Fourth International, the world party of

socialist revolution, founded by leon Trotsky

in 1938."

"The Socialist Workers Party is inter-

world alvet prents corping ot coyase

struggles at home, but the Americar

workers'

enemies are the exploiters on

a worla scale.

The perspective of the

Communist Manifesto- Workers of the

world, unite'=-remains our fundamental

goal. While reactionary legislation

precludes formal affiliation to the

Fourth International, the Socialist

Workers Party, since its founding, has

been an integral political component

of the world party of socialist

revolution."

Assoe, Dir. -

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

Admin. -

Comp. Syst._

Ext. Affairs —

Files & Com. _

Gen. Inv. -

Ident. -

Inspection

Intell.

Laboratory

Plan, & Eval. -

Spec. inv. -

JPM: rsm

Training

Legal Coun.

Telephone Rm. a

Director Sec'y._

MAIL ROOM I

55318

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6z-lilefir-

289.

fom

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## Page 25

HOUSE SELECT COMMITTEE FINAL, ARPORT

INSTITUTE FOR POLICY STUDIES (IPS)

Pages 207 through 213 of the House Select Committee

(HSC) final report concludes that the FBI's basis for

investigation ot lis was weak, was carried on over an

unreasonable length of time and resulted in no evidence of

possible law-breaking or questionable associations on the

part of IPS. The following facts are set forth to rebut

the conclusions of the HSo report and to clarity this

Bureau's position in our overall investigation of IPS.

Although the IPS came into existence in 1963, It

was not untie June, 1960,

that an active investigation of

the organization was initiated as a result ot a meeting at

New York City (NYC) between a national leader of Students

fOI a Democratic Soclety (SDS) and a staff member of IPS.

Gertrin leaders of IPS were of investigative interest to

this

Bureat:

for years prior to 1968, as a result of their contacts

In the United States with certain foreign governments.

The

meetic at NYC was not the fitst connection between IPS

In 1967, the "Hashlugton Free Press," an undercround

newspirat; reported that the lps facilities served as a

Another Hashington

publication, "The Exantner," In 1967, identified IPS as n

Washington-based "Think Factory" which helped train extronists

who Incite violence in American cities, and through its

conterences and sentnars; exerted a continuing intluence

on the tactice and ideology of the New left.

In 1968 and

the years to follow, sos played a major role in fomenting

disruptions and violenco on campuses and in cities across

the country.

the sus leader referred to above, is but one

of three SDS loaders who had connections with IPS and who

were believed to have recelved support from IPS. All three

are current functionaries in the Heather Underground

Organization. Two of these leaders are Federal fugitives.

In October, 1969, live days after disruptions and

occasions, I have called attention to this group (IPS) whose

Comp. syst._avowed puxpose is to study ways of promoting and developing

Ext. Affairs the concept of revolution."

The Bureau's investigation of

Files & Com. IPS was broadened in 1969 and 1970 to determine 1$ IPS was

Ident. -

in violation of the anenomd to the Civil Rights Act of 1968

Inspection- which became known as the Anti-Riot Law.

In October, 1971,

Laboratory

Plon. 8 Eval. _

/ (10)

Spec. inv..

Training

Legal Coun. -

4441 289

Telephone Rm. -

Director Secy — MAIL ROOM

TELETYPE UNIT

HH 55318 DocId:32989710

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GPO: 1975 0 - 569-920

---

## Page 26

it was reported that Ils was circulating a document around.

tho country calling

for brigados to deacond on lnshington, Q. G.,

and closo down Govcrmont agoncion.

It chould he nored,

thot in liay, 1072, thousand of donoratrators converged

Washington,

for the purpose of hinging Govermont

bussness to a bali

This cotion loculted in hundrods of

arrests, nunerous

injuried and thousands of dollars in

property damago.

Goneral requested additional investitation ot it,

pointing

out a poscibla connoction betweon IPQ and tho unnuthorinod

disclosure of thio

"Fontagon Papers," & possible violation

of tho ispionage atacute.

subsequent to this phose oi tho

lavatigation,

the Duronu's interost in IPS continuod in

In April, 107s, FEl londquarters carected the

Noshington Field Olfice to maso evory pitort to separate

the legitimate activities of IPs fron those activities

which vera questionable and in possiblo violation of Federal

In Tobruary, 1074, the invostigation of IPS was

brought to a logical conclusion arter a detornination was

that irsulriciont ovidonco had boon obtained which would

onablo prosecution of IPS for any violation of lederal statutes.

HH 55318

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## Page 27

OPTIONAL FORM NO, 10

MAT 1Y02 CUMION

GSA FPAIR 141 CFRU 101-11.6

UNITED STATES GOVERNMENT

Memorandum

Assoc. Dir..

Dếp AD Adin.

DeR. ADING

TO

: Mr. J. B. Adams

DATE: 1/7/76

FROM : Legal Counsel am

SUBJECT

HOUSE SELECT COMMITTEE ON

INTELLIGENCE ACTIVITIES

Comp. Syst. _

Ext. Affairs -

Files & Com. -

Gen. Inv.

Ident. -

Inspection

Laboratory Fi

Plan. & Evol. T

Spec. Inv. _

Training.

Telephone Rm. -

Director Soc'y -

INTERVIEW OF JOSEPH LEO GORMLEY

At 10:43 a.m. on January 7, 1976, Joseph Gormley

telephonically advised me that he had been interviewed by Richard

Vermeire of the House Select Committee on January 5, 1976, and asked

questions concerning any knowledge he might have regarding the FBI -

U.S. Recording Company relationship. Gormley said that he had advised

Vermeire that he had no personal dealings with U.S. Recording Company

and he had no knowledge as to any FBI - U.S. Recording Company relationship.

He was asked specifically about John P. Mohr, and Gormley responded

by advising Vermeire that he knew nothing about Mohr's relationship,

any, with the U.S. Recording Company or its personnel. Mr. Gormley

stated that he was interviewed for approximately 45 minutes.

RECOMMENDATION:

That the substance of the information furnished by Mr. Gormley

be furnished to the Department.

1 - Personnel file Joseph Leo Gormley

+62-116464-288

1 - Mr. Wannall

ST 115

1 - Mr. Cregar

1 - Mr. Hotis

FC4 V2-1E37

1 - Mr. Daly

1 - Mr. Mintz

126 l

EZ JAN I3 1976

JA M:mfd

(8)

De

zaaoRy Edg Sayings Bonds Regularly on the Payroll Savings Plan

---

## Page 28

OPTIONAL FORM NO, 10

MAY 1862 EDITION

GSA FRAOR (41 CFA) 101-11.6

UNITED STATES GOV

RNMENT

Memorandum

Assoc. Dir. -

Dep. AD Adm. -

TO

:

Mr. W. R. Wannall wil

DATE: 1/23/76

Comp. Syst. _

Ext. Affairs -

Filos & Com. -

FROM

: F. J. Cassid

SUBJECT!

Laboratory

Legal Coun. -

Plan. & Eval. -

HOUSTUDY

Spec. Inv.

Trainir

Telephone Rm. _

Director Soc'y _

Information contained on page 67 of the House Select Committee

(HSC) draft final report concerned procedures set up by the Department

and the HSC and were attributed in the report to the FBI.

This matter was brought to the attention of Mr. Michael e

Сподів

Shaheen, Special Counsel for Intelligence Coordination for the Department,

and he advised that his office would submit the necessary corrections

to Mr. Mitchell Rogovin, Special Counsel to the Director of Central

Intelligence, who was to give the intelligence community's corrections

of the draft to the HSC. On 1/21/76 a representative of Mr. Shaheen's

office delivered to the Intelligence Division a communication addressed 141

Mr. Rogovin (copy attached) and asked it we could deliver the communication

with our package.

On 1/22/76 the Department's communication was furnished to

Mr. Rogovin along with the FBI's suggested revisions.

ACTION:

Enclosure

62-116464

FJC:glw!

(4)

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

1 - Mr. F. J. Cassidy

None. For information.

winter

ENCLOSURE

wor

messes

REC

42.4-4ir4-287

CO FEB ≤ 1976

5- Crali

1976

WhY 55390g08 Doc Id: 32989710

Buy U.S. Savings Bonds Regularly on the Payroll Savings Plan

Page 28

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## Page 29

OFFICE OF THE DEPUTY ATTORNEY GENERAL

WASHINGTON, D.C. 20530

JAN 2 1 1976

TO:

1.14

FROM:

Mitchell Rogovin

Special Counsel to the Director

of. Central Intelligence

Michael E. Shaheen, JI.

Special Counsel for Intelligence

Coordination

SUBJECT: Proposed Corrections in HSC Draft Final Report

Page 67, Paragraph 2 is inaccurate and misleading.

should read:

The Department of Justice then came forward

with a six page set of procedures which it proposed

be followed for processing the Committee's requests

for documents.

These procedures, which were drafted

by staff members of the Senate Select Committee, had

previously been agreed to by the Department of

Justice and the Senate Select Committee.

The Depart-

ment thought that it would be mutually advantageous

to treat the House and Senate Intelligence Committees

in a similar manner.

In paragraph 3, page 67 "Department of Justice"

should be substituted for "FBI".

ENCLOSURE,

CEIOLUTION

(Ф)

11H 55318

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## Page 30

62-116464

1 - Mr.

• B. Adams

2 - Мк.

J. A. Mintz

(1 - Mr.

J. B. Hotis)

1 - Mr. H. N. Bassett

1 - Ms. E. W. Walsh

1 - Mr. R.

Bx LTAts Lagher

1 - Mr. W. R. Wannall

1 - Mr. W. D. Cregar

1 - Mir. F. J. Cassidy

Date:

To:

January 26, 1976

Captain John Mathney

National Security Council Staff

Situation Room

White House

FrOn:

Clarenge l. Kelley, Director

Subject: U. S. HOUSE SELECI COMMITTEE

ON INTELLIGENCE ACTIVITIES (HSC)

Attached are synopsized write-ups concerning

those matters in the HSC's Draft Final Report which,

upon our initial review, we believe to be gross misstatenents

of facts or false conclusions. These comments represent

matters which this bureau finds patently erconeous

when considered with information which the HSC has in

its possession. Ei lUn

REG-51 42-116461=

285

Li FEB 1 1976

These comments are being furnished pursuant

to the instruction of Assistant Attorney General, Civil

Division, Mr. Rex Lee. He are conducting a further

review so that all inaccuracies are available for scrutiny

Аронстіа

laskate.

7:05um. 1-26-

by the appropriate persons.

Enclosures

(8)

Assoc. Dir,

Dep. AD Adm. -

Dep. AD Inv. ...

Asst. Dir.:

Admin. =

Comp. Syst. -

Ext. Affairs

Files & Com. -

Gen. Inv.

Ident.

Inspection

Intell. -

Laboratory

Plan. & Eval, -

Spec. Inv.

Training.

Legal Coun.

Telephone Rm.

20д0458 6

55318

(12)

white toure

Sitise trin Keam,

Glenn

e at

7:40 pm 0/65/6 Rui

1875L ROOM L

DocId: 32969710

TELETYPE UNIT C

Page 30

SEE NOTE PAGE 2

GPO 959-545

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## Page 31

Captain John Mathney

Natinnal Security Cruncil Staff

NOTE:

on 1/26/76, Assistant Attorney General Lee

telephonically advised Supervisor R. H. Ross that the

Bureau should furnish to Captain Mathney, National Security

Council (NSC), White House, those "weaty"

arguments which

indicate the inaccurate nature of the HSC report.

advised that the arguments would be used by the White House

to influence sympathetic supporters in Congress regarding

the report.

He advised that the arguments

should be

stated in a "nut shell" and concern those misstatements

of fact contained in the report. He advised that the

Bureau should not limit itself to only those suggestions

which were initially directed to the HSC but include any

matter which the Bureau could show as erroneous.

He

directed that the write-ups be furnished to Captain John

Mathney, NSC, White House, by close of business 1/26/76.

It was explained to Mr. Lee that the Bureau had not had

time to review the entire report for matters other than

those which had been initially found in the Draft Final

Report reviewed on 1/22/76 and wished tö reserve nur

final comments until a thorough review of the Final Report

could be made. He indicated he understond this and that

such comments should also be furnished in the same manner.

Personnel in INID, Administrative, Inspection

and General Investigative Divisions whn prepared write-ups

initially were advised of this situation and, where the

HSC made no changes in the Draft Final Report, they were

to deternine if the error was such to qualify as a "meaty"

issue of enough substance to be used to refute the report.

Arrangements have been made for delivery of

this letter and encinsures to the White House through the

Liaison Section, INTD.

NOTE CONTINUID PAGE 3

HH 55318

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## Page 32

Captain John Mathney

National Security Council Staff

NOTE CONTINUED:

By separate letter, a copy of the enclosures

is being furnished in the Attorney General.

= 3=

NH 55318

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## Page 33

House Select Committee Final Report

Page 314

The draft report identifies FBI Cointelpros as a series of

covert counterintelligence programs aimed at identifying, penetrating,

and neutralizing subversive elements in the United States. This

statement is erroneous and incomplete. Infact, the Cointelpros were

exten at devotion ay aning a a neutering elegate and also

United States. This error in the facts and incompletences has been

called to the attention of the House Select Committee and it would

appear the Committee is not particularly concerned regarding the

factual character or completeness of its report.

Additionally, the report states "the program itself con-

sisted of myriad clandestine dirty tricks carried out by FBI Agents

against persons and organizations considered subversive by the FBI. "

Again, this statement does not clearly identify the scope of the

targets and is editorialized in a manner to indicate the targets were

selected haphazardly by the FBI. Actually, targets were selected in

the Cointelpros based upon facts developed through investigation.

Also the Department of

Justice, after a thorough review of the

Cointelpros, indicated "the overwhelming bulk of these activities

were clearly legitimate and proper undertakings within the scope of

the FBI's ongoing responsibilities. . ."

DR:Ifj

(8)

ENCLOSURE

285

HH 55318

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## Page 34

.

=

HOUSE SELECT COMMITTEE FINAL REPORT

Page 129

The report states that the staff of the Committee acquired records

of all sales between U. S. Recording Company and the FBI involving the

purchase of equipment from a Committee witness, Martin Kaiser, a manu-

facturer of electronic surveillance equipment, and that a Committee staff

accountant did a detailed study and determined that a 30% markup on one

invoice seen by Kaiser was representative of all such sales.

The report does not contain any accounting data to support the

alleged opinion of the staff accountant. The staff was furnished copies of

all FBI purchases of equipment from Martin I. Kaiser, Inc., made through

U. i. Recording Company by the rBl and the average markup on these

purchases was 14.03%.

the committee has these records which show total

purchases of $101, 391. 70 between 4/5/69 and 4/7/72. There were three

individual purchases totaling $2, 106, which show a markup of 30%. How-

ever, any conclusion that the markup on these three invoices is representa-

tive of all such sales is clearly not a factual statement.

1914

HHT

55318

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112-116-411-285

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## Page 35

HOUSE SELECT COMMITTEE FINAL REPORT

Page 131

The report indicates "Interviews revealed that there was virtually

no control exercised over the confidential contracts between U. S. Recording

to the FBI. "

This is not a factual statement inasmuch as FBI Laboratory personnel

furnished the Administrative Division with estimated prices based on available

industry sources, manufacturer's listed prices, and knowledge of the particular

area. The Administrative Division relied upon the judgment of Laboratory

personnel as to the reasonableness of the estimated price. The procedures

utilized in our confidential purchases from U. S. Recording were fully

explained to Committee investigators during their interviews with officials of

the Laboratory and Administrative Divisions.

HH

55318 DooId:32989710

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suasic 62-115-464-285

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## Page 36

HOUSE SELECT COMMITTEE FINAL REPORT

Page 133

The report indicates "Similarly, the fact that persons within the

FBI responsible for requisitioning and purchasing the equipment had no clear

knowledge of the chain of authority regarding the arrangement is, at best,

The highest officials in the FBI Divisions responsible for requisitioning

and purchasing the equipment had a clear knowledge of the chain of authority

regarding the arrangement. Not everyone responsible for requisitioning and

purchasing was aware of the arrangement,

but it is unfair to even imply that

this constituted nonfeasance.

HH 55318

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36

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## Page 37

HOUSE SELECT COMMITTEE FINAI, REPORT

_-_-

Page 212, line 1 through 17.

"The trash revealed no information related to criminal

investigation.

crimes, FBI devoted time and money to the expensive

process of reconstructing the document that had been

typed by the ribbon.

The yield was almost entirely

intimate sexual gossip. TBI officials told Committee

under oath, that personal information, such as

stal activittes, is discarded if it does not bear on

a crime.

That was not true. Information from the trash

retrieval, including the sexual gossip, was incorporated

into a number of reports.

In each report, the infor-

mation was attributed to

reliable intomation in the pout. tho has supplied.

An IBI otticial testified on Hovember 5, 1975,

that since the restructuring of the Bureau in August, 1973,

there would be no question that irrelevant sexual activity

would not be recorded and reported, however, prior to that

time, it is possible that intormation of that type might

have been recorded in Bureau tiles.

The trash retrieval referred to in this report

took place on August 29, 1972, and information, including

the sexual relationship of two individuals, was incorporated

into a report which was not disseminated by the FBI.

The material relating to sexual activities in the

incident described above was reported prior to the change in

Bureau policy.

The allegation in the Committee report that

FBI officials testified untruthfully concerning the re-

cording of intimate sexual activity is unfounded.

H₩ 55318 DocId: 32989710 Page 37

2:11:11

285

---

## Page 38

House Select Committee Final Report

Footnote Number 525 on page 314 of the report identifies

three Counterintelligence Programs (Cointelpros), the identities of

which have been classified "Secret" by the Attorney General of the

United States because they relate to sensitive areas of foreign

relations. Publication of the identities of these programs could

result in further revelatione which could seriously damage current

and future U. S. diplomatic relations, as well as efforts at detente.

These three programs have not been publicly identified and when

their existence was announced by Attorney General Edward H. Levi

on 5/28/75 they were referred to as "three foreign intelligence

programs classified 'Secret. ''

DR:lfj

(8)

ENCLOSURE

li

in it

H# 55318

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285

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## Page 39

HOUSE SELECT COMMITTEÉ: FINAL REPORT

Page 319, lines I-5, contains the following statement:

"For those who do join SWP, the chill is likely to spread to

employers.

The Committee heard from one witness who termed

FBI's inquiries about his employee, Bruce Bloy, who was an SWP

member, as "presumptive, mysterious, and.. .aggressive."

On 11/18/75, MT. Robert George Silverman, President

of Peer Enterprises, Ltd., Chicago, Illinois, testifled that

during 1972,

two FBI Agents contacted his firm Inquiring about

Bruce Bloy and one other employee, both of whom were member's

soclalist Horkers Party

(SWP) •

He stated that as an employer,

he had no interest in the political bellels of his employees

and he felt the TBI had no right to inquire at an individual's

place of employment. He characterized the approach of the

Agents as presumptive, mysterious and aggressive.

Records of the FBI revealed no FBI Agent ever

contacted Mr. Silverman regarding any employees active in

the YSA, and,

that in fact, an investigator for a committee

of the U.s. House of Representatives furnished information

to the Chicago Office of the FBI on 10/30/72 that he had

contacted Mr, Silverman, Peer Enterprises, on that date

regarding a YSA member employed by that firm.

Although the above informationwas furnished to

the Comnittee by letter dated 11/28/75, which refuted

teatimony of Mr. Silverman and pointed

out that inquiries

Silverman thought were made by the FBI really vere made by

an investigator for a committee of the U.S. House of

Representatives, nevertheless the House Select Committee

Tale countdo bo

neglected to include this correction in its report.

GJLirSM

Assoc. Dir. _

Dep. AD Adm. _

Dep. AD Inv. -

Asst. Dir.:

Admin.

Comp. Syst. _

Ext. Affairs -

Files & Com. _

Gen. Inv. -

Ident. -

Inspection -

Intell. -

Laboratory

Plan. & Eval. _

Spec. Inv. -

Training

Legal Coun.

Telephone Rm. _

Director Sec'y .=

MH 55318

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das-linded

28502454

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## Page 40

HOUSE SELECT COMITTEE FINAI REPORI

ROBERT BARDY

The text of this report states on page 321, line 9,

"He instigated the burglary and supplied the would-be burglars

with tools, money, technical assistance and encouragement.

This statement is incorrect.

Robert William Hardy

was first contacted on June 21, 1971, by a friend who requested

he join the group of individuals who subsequently burglarized

the Camden, New Jersey, Selective Service offices. This irieno

told Hardy on that date the planning had been going on about

six to eight weeks, the target site had been photographed and

under extended surveillance, and

that the "hit" would take

place within two to three weeks.

This information was furnished

to FBI Agents on June 25, 1971, when llardy first contacted our

FBI Office in Camden, New Jersey.

Although lardy did supply the individuals involved

in the burglary of the Selective Service Loard in Canden, New

Jersey, with some tools, roney, technical assistance,

and

encouragement, these contributions were only a part of the

support furnished by others involved to accomplish the burglary

of the Selective Service Doard.

Assoc.Dir.c

Dep. AD Adm. -

Dep. AD Inv. a

Asst. Dir.:

Admin.

TIS: :rLEp(8)

Comp. Syst. _

Ext. Affairs -

Files & Com. -

Gen. Inv.

Ident..

Inspection -

Intell.

Laboratory

-

Plan. & Evalo _

Spec. Inv. _

Training -

Legal Coun.

Telephone Rms. -

Director See'y - MAIL ROOM L

TELETYPE UN ELISE 6 2 - 1119111-4

NW 55018 00cTd-32989710 Pane 40

28. 5m

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## Page 41

TO

FROM

SUBJECT:

:

OPTIONAL FORM NO. 10

MAY 1962 EDITION

GSA FPAIR: AS CERI21-11.6

UNITED STATES GO

RNMENT

Memorandum

Mr. W.

R. Wannall

Assoc. Dir.

:

F. J.

Cassidy J

HOUSTUDY

1 - Mr. J. B. Adams

1 - Mr. H. N. Bassett

1 - Mr. R. J. Gallagher

DATE: 1/21/76

1 - Mr. J. A. Mintz

I - Mr. E. W. Walsh

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

1 - Mr. F. J. Cassidy

Dep. AD

Asst. Dir.:

Admin.

Comp. Syst.

Ext. Affairs

Files & Com.

Gen. Inv..

Ident. -

Inspection

Intell.

Laboratory

Legal Coun

Plan, & Eval..

Spec. Inv. —

Training -

Telophone Rm. -

Director Sec'y -

At approximately 5 p.m. 1/20/76 the Attorney General's Office

made available two xerox copies of a 33o-page report of the House Select

Committee on Intelligence with instructions that this report be reviewed

(1) to see if any classified information furnished by the FBI was contained

therein and (2) to determine if there were any egregious errors contained

therein pertaining to information furnished by the FBI.

Instructions were that if either of the above was discovered

a separate write-up was to be prepared citing the page number and line

number. The text was then to be quoted after which the proposed revisior

was to be set forth. Additionally, an explanation for the change was to b

set forth. Any write-ups developed as a result of this review of the

House Select Committee report were to be furnished to Mr. Mitch Rogovin

at CIA Headquarters by 9 p.m. on the evening of 1/20/76. It being noted

that Mr. Rogovin is coordinating the intelligence community's response to

this report.

Information was subsequently received from the Department that

only information pertaining to classified material needed to be furnished

to Mr. Rogovin by 9 p.m. and that any such information developed was to

be furnished directly to MiX IOSovin REC5I 6 2-41i-4rx-284

Section Chiefs of the Intelligence Division were each assigned

sections of the report to review for items 1 and 2 listed above and

additionally for any information concerning CIA or other Government wi

agencies which might have an impact on the FBI.

DO FEB 4 1976

As Mr. Walsh's testimony was mentioned, a portion Of the one

report was referred to him for review. Portions of primary interest to

CONTINUED - OVER

62-116464

FJC:glw

(9)

SEGRET MATSEL ANACHED

Buy U.S. Savings Bonds Regularly on the Payroll Savings Plan

Sardos Doc 19/02989710

Page 41

---

## Page 42

Memorandum to Mr. W. R. Wannall

Re: Houstudy

62-116464

The only classification problem developed during this review

concerned information contained at page 314 of the report wherein the

identities of Cointelpro activity against certain foreign countries was

mentioned and the countries identified. This information had previously

been classified "Secret" by the Attorney General.

A copy of our memorandum setting forth this information

(attached) was delivered to Mr. Rogovin's office at CIA Headquarters

by a representative of the Intelligence Division at 8 p.m. 1/20/76.

ACTION:

For information. The Intelligence, Administrative, Inspection

and General Investigative Divisions will submit write-ups on any

egregious errors on 1/21/76, which write-ups will be furnished to the

Department and Mr. Rogovin.

pus

- 2 -

MH 55318

DocId: 32989710

Page

42

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## Page 43

EECA28

Page 314

Line: Footaote 13u5

Lenort prude: Lenses prosrame vore the Puerto Flaaa

Jorbor prograta (co), Operation nocivias (1300) la progran

pilling the tatia spinst the documniot Party), Operation wonder

Coverage (1001), tre Caban progsaa (7141) and the Yugoslar

programa (1490).

Proposed revisions: Lesger programs mere the pro rams

aticed at miltint and Violence prose proaps mich sought Puerto idea

Independeaco (1000),

Oparation Licoduial (1000) (a progrand gliting

tho Maila spainst tho Communia: Easty), ond three

additional pro

ganne la due area de foreign intelligence this are cirosuted "coict."

Actson for chane: The information eet forth in the

Esase Select Coatatuee drat seport raterring to 'Operation dorder

Corerage, " the "Osoco Prockaza," and to "Vugoslav Erogram" has

been classtled by ine attorney senoral, exeupt iroa tas,

Category Namuez i, linte oi declasslicution indefinite.

raloase dated May 38, 1375, Storney Goneral Edward 1 1071

referrad to "tarce foreign latelligence progeams elassilled decret.

I nose three programs luve not been pusticly kientsted to date.

Thare was no such prograra inowa as the "Puerto lileas

Bosabery (1206) Our program entitled aroupe sociring independence

for Puerto Fico, Comteriniclugence Prograz" was actaaliy indiatod

ho 1300 ansi not in 100d as indipated by the bioase select Commatce.

Classilled by 5738

i, Categorg Namber a

Date of DeclassLication Indelinite

ww 55318 DocId:32989710 Page 43

62-116405 284.

---

## Page 44

- 519

Programs as Abuses

COINTELPRO. as a

series of covert counterintelli-

gence programs aimed at identifying, penetrating, and

neutralizing subversive elements in the United States.

Unfortunately, the program itself consisted of nyriad

clandestine dirty tricks carried out by fbI agents

against persons and organizations considared subver-

• 525

sive by the

FBI.

Careers were ruined, friendships

- severed, reputations sullied, businesses bankrupted

526/

and, in some cases, lives endangered.

525/ The primary programs were the Communist Party,

U.S.A. program (commenced in 1956), the Socialist

Workers Party program (commenced in 1951), the White

Extremist program (commencad in 1964).

-the Black

Extremist progfam (commenced in 1967), and the New

Left Domestic program (commenced in 1968). Lesser

programs were the Puerto Rican Bomber program (1966),

Operation Hoodwink (1966) la program pitting the Mafia

against the Communist Party), Operation Bordei

Coverage (1961), the Cuban program (1951) and the

Yugoslav program (1969).

AII COINTELPRO programs

cerminated after their existence was discovered

following the burglary of the FBI office in Media,

Pa. on April 27, 1971.

Staff COINTELPRO briefing

between Raymond Wannall, Assistant Director of the

FBI in charge of the Intelligence Division and

J.B.I. Oriphant and R: Vermeire, at FBI headquarters,

. Aug. 22, 1975, copy on file with Sel. Comm. on Intell:

526/ The following 'are but a few examples of specific.

COINTELPRO programs, of which there were a total of

3,208 proposed and 1, 388 carried out:

In 1969, the FBI authorizad an agent to send:

anonymous letters to the superior of father:

Augustus Taylor, JI., a Catholic priest, complaining

of Father Taylor's

speaking out on his television

show against the war in Vietnam and of his public

support oi certain black organizations. Father

Taylor's television show was

subsequently cancelled

and he was transferred. FBI COIVIELPRO memoranda,

MH 55318 DocId: 32989710 Page 44

---

## Page 45

OPTIONAL FORM NO, 10

MAY 1962 EDITION

GSA FPAIR (41 CFA) 101-11.6

UNITED STATES GOVERNMENT

Memorandum

Assoc. Dir. ri

: Mr. J. B. Adams

FROM

: Legal Couns

1 - Mr. Cleveland

1 - Mr. Wannall

1 - Mr. Mintz

DATE:

1-21-76

1 - Mr. Cregar

1 - Mr. Hotis

1 - Mr. Daly

1 - Mr. Stassinos

Asst. Dir.:

Admin

Comp. Syst. _

Ext. Affairs -

Files & Com. -

Gon. Inv. -

Ident.

Inspection

SUBJECT: HOUSTUDY

egal Choi

Plan. & Eval. -

poc. Inv. ..

Training ..

Tolophone Rm. -

Diroctor Soc'y _

Steven Blackhurst, Assistant Special Counsel for

Intelligence Coordination, Department of Justice, advised on 1-21-76

that the Department of Justice, after consultation with Assistant Attorney

General, Office of Legal Counsel, Antonin Scalia, and the Deputy Attorney

General Harold R. Tyler, Jr., had determined that Title 31, Section 869,

does not preclude the Bureau from operating corporate proprietaries.

This decision was orally turnished the House Select Committee. Blackhurst

indicated the House Committee has since been advised of that decision and

furnished a letter requesting a written statement of that decision.

Blackhurst indicated the Department has not as yet decided whether they

would respond to the aforementioned Committee request.

RECOMMENDATION:

For information.

3341003

wve for

pur

ST 10962-116464-283

REC 7: 02

5 JAN 30 1976•

4314

PVD: dkg. (9)

wa namon 1d112992 s Sagings Band Regularly on the Parall Savings Plan

---

## Page 46

The Attorney General

1 - Mr. Wannall

2 - Mr. Mintz.

(Mr. Hotis)

1 - Mr. Cleveland

January 7, 1976°

1 - Mr. Branigan

1

- Mr. Cregar

1 - Mr. McNiff

DIreCtOr, EBI

U. S. HOUSE SELECT COMMITTEE ON

INTELLIGENCE ACTIVITIES (HSC)

Reference is made to HSC letter dated December 1, 1975,

requesting access to documents and other information from the FBI

pertaining to accounting practices and procedures as they relate y

to the operation of proprietaries maintained by the FBI.

Pursuant to your instructions of this date, attached

for your approval and forwarding to the HSC is the original of

a memorandum which responds to the above HSC request.

А сору

of this memorandum is being furnished for your records.

A representative of the HSC has been orally advised

that the material described in the attached letterhead memorandun

is available for review in Bureau space on this date.

It should be noted that, for the reasons set forth in

the memorandum, this Bureau is not making available to the HSC

documents evidencing this Bureau's compliance with state and/or

Federal laws regarding the operation of some of these proprietaries.

It is being left to the decision of the Department as to whether or

not it is

believed desirable for the Department to offer to the HSC

a certification prepared by,a responsible Bureau person to the

effect that Federal and state laws have been observed in these

operations.

a Chest 115 to 1 Me 12 Gr

Enclosures (2)

RRC562-7/64664=282

62-116464

Dep. AD Adm. - I - The Deputy Attorney General

(Attention:

Michael E. Shaheen, Jr.

Б....

Comp. Syst. -

Ext. Affairs

Files & Com.

Gen. Inv. -

Ident.

Inspection — TUM/PVD: lad l?

Intell. -

Laboratory

_

(14)

Plon. & Eval. -

Spec. Inv. -

Training -

Special Counsel for

Intelligence Coordination)

BAHL

SEE NOTE NEXT PAGE

- Felton

282

GPO: 1975 0 - 569-920

TELETYPE UNIT

R*40 Page 46

---

## Page 47

The Attorney General

NOTE:

Representatives of the FBI met with the Attorney General on

1/6/76 objecting to the furnishing of the information described in

the attached letterhead memorandum.

The Attorney General decided

that the Bureau should be responsive to the HSC request for infor-

mation concerning financial transactions relating to the operation

on 1/7/76, Michael E. Shaheen, Jr., Special

Counsel for Intelligence Coordination in the Department, advised

that Rex Lee, Assistant Attorney General, Civil Division, after

attending a White House meeting which discussed this particular

request and consultation with the Attorney General, had been

instructed by the Attorney General, to insure that the Bureau's

response to the HSC request was delivered on this date to the

Committee.

HH 55318 DocId: 32989710

Page 47

---

## Page 48

1 - Mr. Wannall

2 - Mr. Mintz

(Mr. Hotis)

1 - Mr.

Cleveland

January 7, 1976

1 - Mr.

Branigan

1 - Mr. Cregar

1 - Mr. McNiff

U. S. HOUSE SELECT COMMITTEE ON

INTELLIGENCE ACTIVITIES (HSC)

Reference is made to the December 1, 1975, letter of

the HSC requesting access to FBI materials pertaining to ac-

counting practices and procedures as they relate to the operation

of three FBI proprietaries.

Pursuant to an accommodation reached on December 21,

1975, between Mr.

Rex Lee, Assistant Attorney General, Department

of Justice, and

Mr. Aaron Donner, HSC Counsel, it was

agreed that

this Bureau would make available

sanitized material responsive to

requests contained in referenced HSC letter in the following

specific areas and then only if such information did not tend to

expose the operation in question:

1. Financial balance sheet and a profit and loss

statement for no more than five years.

2. The original amount and source of the money used

to create each proprietary.

3. Evidence of compliance with state and/or Federal

laws.

Materials believed to be responsive to the aforementioned

Items 1 and 2, consistent with security of operations, have been

assembled and

are available for review by HSC Staff Members in

Assoe. Dir. _

Room 4171, J. Edgar Hoover Building.

Mr. Elliott Maddox of the

Dep. AD Adm. -

Dep. AD Int. _

HSC was advised of this on January 7, 1976 by a representative of

Asst. Dir.:

the FBI.

Admin. _

Comp. Syst. -

Ext. Affairs -

Files & Com. _

Gen, Inv. -

Ident. -

Inspection -

Intell. -

Loborotory

Plon. & Eval. -

TJM/PVD :lad

(13)

62-

116464

28210

Spec. Inv. -

Training

Legal Coun.

Telephone Rm. -

Director Sec'y —

MAIL ROOM L

HH 55318

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TELETYPE UNIT I

Page 48

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## Page 49

U.S. HOUSE SELECT COMMITTEE ON INTELLIGENCE ACTIVITIES (HSC)

With regard to Item 3, material being made available

for review will show that no income was involved in the operation

of one of the proprietaries, hence, no state and/or Federal taxes

were paid with regard to that particular operation. As advised in

the briefing afforded

the HSC on October 15, 1975, concerning the

operation of proprietaries, this Bureau has complied with Federal

and/or state laws in connection with the operation of the

two re

maining proprietaries. Evidence, however, of this Bureau's

compliance with such Federal and/or state laws cannot be made

avallable to the HSC at this time as presentation of such evidence,

amount of research, could lead to the ex-

posure of these operations therefore endangering not only their

successful conclusion but also possibly, in some instances, the

lives

of Agents and/or informants involved in the operation.

1 - The Attorney General

NOTE: On 1/6/76, Mx. Steven Blackhurst, Assistant Special Counsel

for Intelligence Coordination in the Department,

advised that the

balance

sheets and profit and loss statements being made available

for review by the HSC should for purposes of security be rounded

off to the nearest $10,000 or $1,000 increment as the case may be.

MH 55318

DocId: 32989710

Page

49

---

## Page 50

HSC REQUEST 12/1/75

re Propletartes

Itex

1: Balance Sheets and Profit and Loss

Statements 1970 - 75 relating to

property holding, metropolitan area.

ACCESS

laformation inade critates to H5e was

HH 55318 DocId:32989710 Page 50

427444604thenk in to returns file a 1871-4

-feet and distic gone, compens on

the returns are maintained ty

Lenge Baker, WF0.

TIM

---

## Page 51

BALAUICE. SITY

FISCAL, INAT: 1971 %

ASSISS

Current Asseto:

Cash on land

$10,000.00

rrapaid items

10,000.00

Receivablos

total Curront Issets

10,000.2: 30. 000.00

Fixed Assets

Building and Equipment

Land

Inss: Deprociation on

Fixed Assocs

Total Fired Asrets

Total Asocto

0000, 000.00

130,000.00

320,000.00

2570,000.00

$000.000.00

LIABILIFIES ALD EQUITY

Current Tinbilities:

Accrued taxes

$10,000.00

Total Current Liabilities

$10,000.00

Iong fern Liabilitica:

Notes Payablo

Total long Tem Limbilities

$540,000.00

$540.000.00

stochholders" rouity:

Capital stoch:

$60,000.00

Surplus

(10,000.00)

Total Stockholders' Equity

$50,000.00

Total Liabilitien and Iquicy

$600,000.00

# Rounded to noarest $10,000.00

62-116464-282

HH 55318 DocId: 32989710 Page 51

---

## Page 52

BrIANCE SHEET

FISCAL YEAR 1072

ASSETS

current Assets on fland

Receivablos

Total Current Assets

$10,000.00

20,000.00

$30,000.00

Fixed Nosets:

Building and Iquipment

Land

Less: Depreciation on

Fixed Ascets

Total Fixed Assets

Total Asseto

$300,000.00

90,000.0л

890,000.00

350,000.00

540,000.00

$570, 000.00

LIABILITILS AND EQUITY

Long fern Liabilities:

Notes Payable

$520,000.00

Total long Term Liabilitien

510,000.00

Stockholders' Equity:

Capital Stock

Surplus

Total Stockholdors' Iquity

Total Liabilitios and iquity

60,000.00

-0-

$00.000.00

$570,000.00

* Rounded to nearest $10,000.00

625116464-

282

NH 55318 DocId: 32989710 Page 52

---

## Page 53

= €,

BALANCE SEFLE

FISCAL XEAR 1973

ASSETS

Current Assets:

Cásh on Hand

$20,000.00

Receivables

20,000.00

Total Current Assets

-$40,000.00

Fixed Assets:

Building and Equipment

Land

Less:

Depreciation on

Fixed Assets

Total Fixed Assets

Total Assets

$800,000.00

90,000.00

890,000.00

370,000.00

$520,000.00

$560, 000.00

LIABILITIES AND EQUITY

Long Term Liabilities:

Notes Fayable

$490,000.00

Total Long Torm Idabilities

$400,000.00

Stockholders' Iquity:

Capital Stock

$60,000.00

Surplus

10,000.00

Total Stockholders' Equity

$70.000.00

Total Liabilities and Equity

2560,000.00

* Rounded to nearest $10,000.00

62-116464-282

1256÷

HH 55318 DocId:32989710 Page 53

---

## Page 54

BALANCT: STANT

FISCAL INAR 1974

ASSES

Current Assets:

Casit on lland

$20,000.00

Receivables

10,000.00

Local Current issots

$30,000.00

Pized Assets:

Bullding and Equipment

Land

Less:

Depreciation on

Fixed Assots

Total Fixed Assets

$800,000.00

30,000.01

890,000.00

390,000.00

Total asseta

$500,000.00

$530,000.00

LIABILICIEE AUD FOGINY

Long Term Ilabilities:

Totes Payable

$450, 000.00

Total Long Term Liabilities

5450, 000.00

stockholders' Iquity:

Capital

$60,000.00

Surplus

20,000.00

Total Stockholders' Equity

180, 000.00

Total Liabilitics and Equity

1530,000.00

* Roundod to nearest $10,000.00

62-116464-282

intralian

12IK

HH 55318 DocId:32989710 Page 54

---

## Page 55

."".

DALANCE SurdE

FISCAL YELE 1975

ASSEES

Current Assets:

Cash on Hland

$20,000.00

Receivahles

Total Current Isrots

10,000.00

$30,000.00

Fixed Assets:

Building and Eguipment

Lond

Icss:

Depreciation on

Fixed Assets

local Fixed Assets

$900,000.00

90,000.0

800.000.00

420,000.00

Total Assets

$480,000.00

$510,000.00

LIABILICIES AND FOUIrY

Long Term Liabilities:

Motes Tayable

$120,000.00

Total long Term Ilabilities

$420,000.00

$60,000.00

Surplus

30,000.00

Total Stockholders' Fquity

$00, 000.00

Total Liabilities and rquity

2510,000.00

* Roundeã io ncaresi $10,000.00

62-116464- 282

707.,-1256%

• NN 55318 DocId: 32989710 Page 55

---

## Page 56

PROFIT AND LOSS STATENINT

FISCAL YEAR 1971

GrosS Income

Operating Expenses:

Salaries

Depreciation

other Operating Expenses

Net Operating Income

Other Revenue and Gain:

Interest Revenue

Other Expenses and tosses:

Interest Expense

Net Income Before Taxes

Taxes Paid

Net Income i*

$145,000.

$10,000.

23,000.

13,000.

76,000.

69,000.

1,000.

34,000.

33,000.

36,000.

15, 000.

$21,000.

* Rounded to nearést $1,000.00

** Before. Federal and Local Income Faxes

HH 55318 DocId: 32989710 Page 56

62-116565-282

+-1256%

---

## Page 57

PROFIT AND LOSS SPATIENT

FISCAL YEAR 1972

Gross Income

Operating Expenses:

Salaries

Depreciation

Other Operating Expenses

Net Operating Income

Other Revenue and Gain:

Interest Revenue

Other Expenses and Losses:

Interest Expense

Net Income Before Taxes

Taxes Paid

Net Income

$153,000.

$11,000.

22,000.

58,000.

91,000.

62,000.

1,000.

31,000.

30,000.

32,000.

16,000.

$16,000.

* Rounded to nearest $1,000.00

** Before Federal and Local Income Taxes

62-116464-282

HH 55318 DocId: 32989710 Page 57

---

## Page 58

PROFIT AND LOSS SUATENINE

FISCAL, YEAR 1973

Gross Income

Operating Ixpenses:

Salaries

Deprociation

Other Oporating Expenses

Hot Operating Income

Other levenue and Gain:

Interect Revenue

Other Expenses and Losses:

Interest Expense

Net Income Before Taxes

Taxes Paid

Net Incone

*

$153,000.

$12,000.

21,000.

57,000.

90,000.

63,000.

$ 2,000.

30,000=

28.000.

35, 000.

17,000.

$18,000

Rounded to nearest $1,000.00

** Defore Federal and Local Income Taxes

62-116464-282

5318 Deota: 3989710 Page 56 T: -111:1

---

## Page 59

PROFIT AND LOSS STATEMENT

FISCAL YEAR 1074

Gross Incone

Operating Expenses:

Salaries

Depreciation

other Operating Expenses

Net Operating Income

Other Revenue and Gain:

Interest Revenue

Other Expenses and Losses:

Interest Expense

Net Income Before Taxes

Taxes Paid

Net Income *:

$160,000.

13,000.

21,000.

71,000.

$105,000.

55,000.

2,000.

29,000.

27,000.

28,000.

18,000.

$ 10,000.

* Rounded to nearest $1,000.00

** Fofore Fedoral and local Income Tases

62-116464-282

HH 55318 DocId: 32989710 Page 59

S11256%

---

## Page 60

PROFIT AND LOSS STATEMENT

FISCAL, YEAR 1975

Cross Income

Operating Expenses:

Salaries

Depreciation

Other Operating Ixpenses

Net Operating Incone

Other Revenue and Gain:

Interest Revenue

Other Expenses and losses:

Interest Expense

Net Incone Before Taxes

Taxes Paid

Net Incone **

$13,000.

21,000.

79,000.

$ 2,000.

$20,000.

* Rounded to nearest $1,000.00

** Beforr Feâeral and Local Income Taxes

62-116464-282

• 141!9

MY 55318 DocId: 32989710 Page 60

$170.000.

$113,000.

57,000.

$ 26,000.

31,000.

17,000.

$ 14,000.

---

## Page 61

HSC REQUEST 12/1/75

re PROPRIEYARIES

Item 2:

Initial Funding and Source of

Funds for operation of property

holding, metropolitan area.

ACCESS

HH

55318

DocId: 32989710

Page 61

62-116464-282

to IN 12567.

---

## Page 62

This proprietary was created from funds available

tn the Central Intelligence Agency which were transferred

to the FBI. The full purchase price of the proprietary was

$1,410,000 including closing costs.

*Rounded tn nearest $10,000.

HH 55318

DocId: 32989710

Page 62

---

## Page 63

HSC REQUEST 12/1/75

re Propietaries

Item 1%

Balance Sheet, 1975 relating to

business operation, metropolitan area.

ACCESS

62-116464-282

+ IN 464 12564

HH 55318

DocId: 32989710

Page

63

---

## Page 64

BELANCE SITTE

FISCAL YFAR 1975, ENDING OCTOBER 31.

ASSERS

Current Assets:

Cash on Hand

fecurity Deposit on Property

Total Current Assets

$10,303.71

11,192.56

$21,796.27

Fixed Assets:

Leasehold Improvements

Total Fixed Assets

2262029-2

LIABILITIES AND SOUITY

Long Term lavanlities:

$65,000.00

Total Long Term Liabilities

$65.000.000

Partnership Equity:

rarned Surplus

($10,087.88)

Total Partnership Fquity

($40,087.80)

Total Liabilitios and Fruity

$24, 212.12

HH 55318

DocId:32989710

Page 64

---

## Page 65

HSC REQUEST 12/1/75

re Proprietaries

Iten 2: Inltial Funding and Source of

Funds for operation of business,

metropolitan area.

ACCESS

HH 55318

DocId: 32989710

Page 65

62-116464-282

+ t6. t11-12564

---

## Page 66

This proprietary was created from funds

available to the Central Intelligence Agency ano

transferred to the FBI.

The amuunt of $155,000

has been allocated to this proprietary from

these

funds for a period of three years. Of this amount,

$65,000 was fuinished to the Washington Field Office

on November 1, 1974.

On November 4,

1975, the

Washington Field Office was furnished $46,325. The

balance is being held in escrow.

manny

---

## Page 67

ESC REQUEST 12/1/75

re Propriotaries

Items I and 2: Balance Sheet, Profit aud

Loss Statement and Initial

relating

To DiES operation, Baltimore

area.

ACCESS

62-1164444-282

HH 55318

DocId: 32989710

Page 67

---

## Page 68

BALANCE SHEET

AS OF DECEMBER 31, 1975

ASSETS

CURRENT ASSETS:

Cash*

Accounts Receivable.

..

..

•

PLANT AND EQUIPMENT:

Equipment.

Trucks and Autos.

...

...

•

...

Less Reserve for Depreciation

OTHER ASSETS:

Deposit on Contracts

•

→..

TOTAL ASSETS •

LIABILITIES AND NET WORTH

CURRENT LIABILITIES:

Federal and State Withholding Taxes

OTHER LIABILITIES:

Loan - Stockholders

TOTAL LIABILITIES

NET WORTH:

Capital Stock Issued.

Capital Contributed in Excess of Stated

Value. . . . . . . . ........

→.•

• ... $ 97,843.33

...

5, 000,00

1, 046.00

4, 700.00

5, 746.00

1,184.00

$102, 843.33

189.99

4, 562.00

1, 256. G0

$108, 661.33

$

189.99

26, 671. 66

• $ 26, 861. 65

$100, 000.00

4, 700.00

104,

700.00

Retained Earnings

Loss Incurred .

(22, 900.32)

TOTAL NET WORTH

TOTAL LIABILITIES AND NET WORTH

62-116464

282-

*Note: All Cash in bank from U.S. Treasugaminus

Sl, 000 from services performed.

HH 55318 DocId:32989710 Page 68

81, 799,68

$108, 661.33

1251

---

## Page 69

STATEMENT OF PROFIT AND LOSS

INCOME

.

$16, 000.00

COST OF SALES:

Labor . . ...

..

Consultant.

Materials

....

..

. ... .

Equipment Rental .

.. .....

Miscellaneous Job Costs

Total.

$ 3, 224.00

8, 900.00

3, 259.05

3, 156. 02

1, 423.26

LOSS

19, 962.33

$ 3,962.33

EXPENSES:

Small Tools & Supplies.

Insurance. •

Gas & Oil

Office and Sundry Expenses

Entertainment

Taxes.

Depreciation

..

....

..

Total

NET OPERATING LOSS

• $

891.42

Il,

497.63

851.80

759.99

572.22

180. 93

1, 184.00

.......

18, 937. 99

($22, 900.32)

1.

1W 55318 DocId: 32989710 Page 69

---

## Page 70

YOTE: SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

TO:

. Intelligence Community Staff

ATTN: Central Index

CLASSIFY AS APPROPRIATE

FROM:

• FBI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW PROVIDED (check appropriate term.

for revicw but not transmittod, so nore! a document was made avasiable

X I DOCUMENT

BRIEFING

INTERVIEW

TESTIMONY

OTHER

FOR REVIEW

3. TO WHOM PROVIDED (check appropriate term; add specifi: names if appropriate)

2. DATE

PROVIDED

1/7/76

SSC

HSC

4. IDENTIFICATION (provide

descriptive data for documents;

give name or identification number of briefer,

interviewee, testifier and subject)

Memorandum

vise stat.

HSC letter 12/1/75

number

on seen met alive, response

to formal

subpoena,

etc.)

request,

other-

U

7. KEed order lent for e phase fiate key words from the list provided separately;

if key

words not listed are

Budget

SUMMARY (see reverse side before completing this item)

Available for review by SSC Staff Members at FBIHQ sanitized

materials pertaining to accounting practices and procedures in

the following specific areas: Finaneial balance sheet and a

profit and loss statement for no more than five years. The

briginal amount and source of the money used to create each

proprietary. Evidence of compliance with state and/or Federal laws.

62-116464

FMK: Emk

(4)

ORIGINAL, VIA LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY

62-

116464-282

TREAT AS VELLOW Si

3791 0x4-323910 aredo tail 1-1256%

---

## Page 71

The Attorney General

1

Mr.

J.

B. Adams

Mr.

н.

N. Bassett

font fos

- Mir.

R.

J. Gallagher

- Mr. J. A. Mintz

1 - Mr.

E. W. Walsh

January 22, 1976

1 - Mr.

W. R. Wannall

1

- MI•

W.

0. Cregar

1

- Mr. F. J. Cassidy

Director, FBI

HOUSE SETECI COMMITTEE

ON INTELLIGENCE

123176

RHR

Pursuant to the request made by your staff

January 20, 1976, the Bureau has reviewed the draft final

report of the House Select Committee on Intelligence:

am forwarding to you separate vrite-ups concerning those

parts of the report based on information furnished by the

FBI which ve believe disclose information which should be

classified and matters which are erroneously reported by

the Committee.

Additionally: pursuant to your staff's

request, we are furnishing

copy of the vrite-ups con-

cerning erroneous material to Mr. Hitchell Rogovin,

Special Counsel to the Director of Central Intelligence.

On the evening of January 20, 1976, we furnished lir. Rogovin

a copy of the write-up concerning classification matters.

Enclosures - 31

1 - Mr. Michael Shaheen, JI.

RHR: Special Counsel for

Intelligence Coordination

(12) Jmn

SEE NOTE PAGE 2

STITT

REC-3T

62-1101/21-281

5 JAN 30 1976

-=

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

ENCLOSURE,

Admin.

Comp. Syst. -

Ext. Affairs

Files & Com. -

Gen. Inv. -

Ident. .

Inspection -

Intell.

Laboratory

Plan. & Eval. -

Spec. Inv. _

Training -

Legal Coun. _

Telephone Rm. -

NOUGH SHEE MAS

ROOM l

089710

TELETYPE UNIT [3

Page 71

SECRET MATERIAL ATTACHED

11:4

and an tor

ALOPE

GPO: 1974 r-d=126

---

## Page 72

The Attorney General

NOTE:

At approximately 5 p.m. 1/20/76 the Attorney General's

Office made available two Xerox copies oi a 338 page report of

the House Select Committee on Intelligence with instructions

that this report be revieved (1) to see it any classiflea inior

mation furnished by the FBI was contained therein anã (2)

to

pertaining to information furnished by the FBI. Mr. Michael

Shaheen, JI., Special Counsel Lor Intelligence Coordination,

and Mr. Douglas Marvin, Special Assistant to the Attorney

General, advised that the Bureau's observations were to be

furnished directly to Mr. Mitchell Rogovin, Special Counsel

to the Director of Central Intelligence.

Section Chiefs of the Intelligence Division were

assigned sections of the report to review for itens 1 and 2

listed above and additionally for any information concerning

CIA or other Government agencies which might have an impact

on the FBI.

Portions of primary interest to the Inspection,

General Investigative, and Administrative Divisions were

reterred to those DiVisiOns.

The only classification problem developed during

this review concerned information contained at page 314 of

the report wherein the identities of Cointelpro activity

against certain foreign countries was mentioned and the

countries identified. This information had previously been

classified "Secret" by the Attorney General.

A COPY OF OUT

memorandum setting forth this information was delivered to

Mr. Rogovin's office at CIA Headquarters by a representa-

tive of the Intelligence Division at

: 8 p.m. 1/20/76.

Write-ups prepared by the concerned Divisions

regarding errors in the draft vere prepared on 1/21/76,

and are being furnished to the Attorney General and Rogovin.

Those furnished by Administrative and Inspection Divisions

were received from Assistant

• Directors Walsh

and. Bassett,

respectively.

-2-

14 55318

DocId: 32989710 Page 72

---

## Page 73

The Attorney General

NOT& CONTINUED:

Mr. Rogovin had advised that he would need the FBI material

by 3 p.m. on 1/22/76 as he was to meet with the House Select Committee

at 4 p.m. on 1/22/76 to present the material for the entire intelligence

community. At 12:45 p.m. on 1/22/76 Mr. Rogovin advised that he had

received a call from the House Select Committee staff in which he was

advised that they would cease all negotiations at 3 p.m. on 1/22/76.

He advised that he was en rotte to the Capitol Building and requested

that any submissions that the FBI had to correct the record be furnished

to him at the Capitol Building as soon as possible. The materials prepared

by the FBI were approved by the Assistant Director of the Division involved

and at the time of receipt of the above information from Mr. Rogovin these

materials had just been delivered to Mr. Adams' office. Pursuant to

instructions of Mr. Mack in Mr. Adams' office a copy of the materials

were delivered by a representative of the Legal Counsel Division to

Mr. Rogovin so that we would not miss the opportunity of placing in

record our objections to the erroneous material concerning FBI information

set forth in the draft of the House Select Committee report.

3 _

NN 33318

DooId:32989710

Page 73

---

## Page 74

. BECRET

2A80 214

Line: Footaote 1505

Eepoxt reada: Lescor progenas vêre the Pucele Alean

Momber progeazo (1900), Operelion Hooswiak (1960) la crogree

pittlog the toalia agsiort tho Conmaniot Farig),

WRaTEON JUEdOr

Coverago (1001), tue Cuoon progezza (I4t) zoo tho Xugoclnr

PrOgEanI (4u64)

Pronosed zerioiong: Leesud programe nore the prozzars

slued at atttone 7ia Visfenca-prose graaps woica sougut fuezio Lican

Ixdopendonee (1004), Oparatin Moeariax (1900) (a prograns piltig

the Moila ngaiast ire Comauaint Parvgl: and tarco sodtional prom

eraime lo tuo urca ci ioroten ialelligenco tant are clessuled "rocret.

Reszon foe chanre: 3 he informuation set dorta in the

Floure Eclect Costantoe dralt zopart roermine te 'Operatico sorder

Corezare, " the "Oaoca arogreta," sad tho "Yugoolar Fregrem Ras

boon cleseslied by lie awtorneg wenett sxeupt iron Coa,

Catezosg nunwes üe date di cccleralliention ladettrite.

in & press

release dciod ng 28, 1975, éndornoy Conorol Lawerd A. Eevi

reterred do "taroe forelga iuielligenco propramo classilied "cacras.":'

I nede lnnse programe have not oooa paoticiy lucnuried so date.

Thora sau no nuch proursra bnowa ts tbe "Puevto iican

Bombor' (110G), Mur progroi entiried "Crouga Socking isdependence

for ¡uerto Aico, Counterinelligznce Droyzam"' was scizaily inldiuica

la 1900 aod not in 1006 as indieated oy the Zouse select Coaumttice.

SECrET

ClossEled by 5795

Excaipt tron Lirs, Cerarorg Kamber 3

Dade di Declascuienilon Icdaiiako

ano.onusáaas

ENCLOSUNE

HH 55318 DocId: 32989710 Page 74

02

-11646-281

---

## Page 75

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 34

Heading:

Paragraph 1:

"a. An Attack Averted"

"If no 'flank' attack was launched by the FBI to

discredit the Committee, it may have been because one

was averted by the Committee."

Proposed Revision

This paragraph should be deleted.

Reason for the Change •

This heading and paragraph are speculative and derogatory to the

FBI and should be deleted. The FBI never launched, or contemplated any

attack to discredit the Committee and such speculation is completely

irresponsible.

HH 55318

DocId: 32989710 Page 75

---

## Page 76

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 35, Paragraph 1

• "In a Committee deposition oi December 30, 1975, Kaiser

claimed that the FBI agents were more concerned with discrediting

the Committee's inquiry and personnel than conducting their

investigation of U. S. Recording. Ultimately, the agents had

elicited from him a statement, written by an FBI agent, which in

some insignificant details recanted portions of his testimony.

Mr. Kaiser then repudiated that written statement, which he

had signed while agents stood over him and thrust it in front of him."

Proposed Revision

In a Committee deposition of December 30, 1975, Kaiser claimed

that FBI Agents were more concerned with what appeared to be material

errors in his statement to the Committee than in the relationship with U. S.

Recording. Ultimately, the Agents had elicited from him a statement, written

in part by an FBI Agent, which in some details recanted portions of his

testimony. Kaiser said he wrote the last two paragraphs of the statement.

MH 55318

DocId: 32989710

Page 76

---

## Page 77

Reason for the Change

The paragraph should be changed as it is not factual. Kaiser did

not claim that the FBI Agents were more concerned with discrediting the

Committee's inquiry and personnel than conducting their investigation of

U. S. Recording Company, and Kaiser did not state that he repudiated his

written statement of 12/23/75.

In a Committee deposition of 12/30/75, on page 33, the following

question and answer aupear in regard to the interview of Martin L. Kaiser

on 12/23/75:

"Mr. Oliphant: Would you describe that meeting for us? Would

"Mr. Kaiser:

you describe what happened, what they said to you,

what you said to them?

Yes; it was clear from the onset that they were no

longer interested in my opinion or my position, that

they had some facts they wanted to state to me, and

they came under the guise of clarifying some issues,

but they immediately hit me with these material

errors, what appeared to be material errors in my

statement."

On page 55 of the deposition Mr. Kaiser was asked about references

to two Committee investigators by the interviewing FBI Agents and the

following appears:

.

HH 55318 DocId:32989710 • Page 77

---

## Page 78

"Mr. Atkisson: Did they refer to any other Committee personnel

or the Committee in general?

"Mr. Kaiser:

No.

"Mr. Atkisson: Any members of the Committee, Chairman Pike

or anybody like that?

"Mr". Kaiser:

Nobody. . .

. "

Or page 76 of the deposition it shows:

"Mr. Oliphant: One final question. On the statement which you gave

to the FBI agents on December 23, 1975, I call your

attention to page 4 of that statement, Committee's

exhibit #1. Is this your handwriting?

"Mr. Kaiser:

Right, the last two paragraphs are my handwriting. "

WW 55318 DocId: 32989710

Page 78

---

## Page 79

Page 58, lines 14-16, page 59, line I and footnote

99 reads as follows:

Five minutes compares favorably with

the weeks it took Committee staff to obtain precise

answers to the difference between FBI 'informants' and

'confidential sources.

199

The single material factor is that informants are

live human beings who are paid for the information they

provide.

A question, then, of the number of 'informants'

used against the Institute

for Policy Studies could

safely be answered in impressively low numbers,

when the

fact is that fully 52 'sources' (unpaid individuals,

inanimate objects such as pieces ot abandoned trash or

a reconstructed typewriter ribbon, in addition to true

'informants') were used. See, Comm. Hearings, at

•Nov. 18, 1975:

"Terms may differ when functions do not. At DEA,

much is made of the difference between 'enforcement'

functions and 'intelligence' functions. In practice,

DiA Intelligence is tied to enforcement, which means that

It Is strictly 'tactical.' See, notes

and

accompanying text.

Proposed Revision;

"Five minutes compares favorably

with the weeks it took Committee staff to obtain precise

answers to the difference between FBI 'informants'

and

"confidential sources.

"The single material factor is that informants

are live human beingswho may be paid for the information

they provide.

A question, then, of the number of 'informants"

used against the Institute for Policy Studies (IPS) coulo

salely be answered in impressively low numbers.

the number of fBI sources concealed in the initial report

dated March 14, 1969, on IPS totaled 52.

This

total

included concealment

which was provided

to paid informants,

unpaid individuals who furnished information, other

Government agencies, and other intelligence and police

agencies. Paid informants were concealed to insure their

continued effectiveness and personal protection.

A1]

other individuals and agencies were concealed because they

expressed or implied that their identities be concealed.

It was a policy of the FBI to extend to any person or agency,

the privilege of having their identities concealed if they

provide information to the FBI. Subsequent reports on

55318 DocId: 32989710 Page

79

---

## Page 80

"IPS

protected the technique of obtaining abandoned trash

and reconstructing a

t"pewriter ribbon by referring to

these techniques as 'sources.'

The initial 109 page

IPS report surveyed IPS activities from its inception

in 1962 to March, 1969, however,

the information was

obtaine l during

the period of active investigation in 1969.

This report concealed 52 varied sources of information,

but the bulk of these sources were used to provide

identification and characterizations of individuals and

organizations affiliated or in contact with IPS.

Few

sources repoxted directly, on IPS.

See Comm. Hearings, at

, Nov. 18, 1975.

Reason for Revision: Page 58 of the Committee

report is captioned "The Right Question." It discusses

the problem of developing information about intelligence

activities without knowing the right questions to ask.

The report indicates it took the Committee staff weeks

to obtain precise answers to the difference between FBI

"informants" and "confidential sources.". Footnote 99

is an effort to show that when the FBI

the us on footnote informants"

used, it is not responsive to the question of the number

of sources used. The number "52" which is used in footnote

99, is the number of I symbols used to conceal sources

the initial IPS report dated March 14, 1969.

These T

symbols concealed informants, Government

agencies, other

police and intelligence agencies, and unpaid individuals

who voluntarily furnished information to the FBI. None

of the information contained in the report was derived

from abandoned trash or a reconstructed typevriter ribbon,

however, in subsequent IPS reports, both those techniques

were used and reported as sources.

The Committee report

inaccurate and does not

provide the reasons for concealing

sources of information in BI reports. The Committee

implies that the FBI has control over

these 52 varied sources,

and that because they furnish information, they are

identical to paid informants.

- 2-

HH 55318 DooId:32989710 Page 80

---

## Page 81

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 83, Paragraph 6

"A middle-man who is a close friend of top FBI officials tacked

thousands, if not millions, of dollars of unwarranted mark-ups on to

covert purchases."

Proposed Revision

The FBI purchased through a middleman considerable electronic equipment.

Markups on the equipment purchased amounted to several thousand dollars.

Reason for Change

The report is making a sweeping statement apparently referring to all of

the agencies they made inquiry of who purchased electronic equipment through

a cut-out. However, by its very wording, there appears to be two areas -- one

a deliberate attempt to imply improprieties (friend of several top FBI officials);

and the other an inference that, if true, should be stated as a fact as opposed

• to what appears to be an imflammatory and misleading statement (if not

millions). As to deletion of the word "unwarranted, " there are no unwarranted

markups known on any FBi purchases.

SALLUSURL.

662 116441-281

HH 55318

DocId:32989710

Page 81

---

## Page 82

Page 92

Lines 1 through 4

"The FBI, for example, had neglected to include such clear

intelligence functions as the Nationa! Bomb Data Center, or Counterintelli-

gence. 156r1

The quoted sentence should be stricken from the record as it is

simply incorrect. As mentioned in footnote number 156 quoting the testimony

of Assistant Director Eugene W. Walsh, Administrative Division,

• F'B1,

data collected under National Bomb Data Center does not constitute "intelligence."

As to the FBI's neglecting to include counterintelligence information in data

furnished Office of Management and Budget, this is simply incörrect. Such.

data was furnished to Office of Management and Budget upon their request by

the Office of Management and Finance, U. S. Department of Justice, and

upon request this information was also furnished directly to the Committee staff.

In fact the letter quoted in iootnote number 155 from Mr. Ogilvie of the Office

of Management and Budget dated November 12, 1975, quotes the data relating

to counterintelligence for the FBI.. These figures are $87, 119, 000 and 3383 in

personnel. It is noted there is an apparent typographical error in the figures

quoted in Mr. Ogilvie's letter where personnel is shown as 3385.

HH 55318

Do0Id:32989710

Page

82

---

## Page 83

Page 95

Lines 3 through 5

"The FBI testified, for example, that it does not know if CIA has

a counterintelligence group, that it does not know how much CIA's

operations cost, and that it does not know if CIA duplicates FBI's work.

160''

This sentence should be stricken from the record as it is not

supported by footnote number 160. The footnote quotes Mr. Field as asking

Assistant Director Eugene W. Walsh, Administrative Division, FBI, the

following question:

"Mr. Field. Has anybody in the administration ever told all of

these people, who spend multi-multi millions of dollars, over and over

again--really on the same program--has anybody in the vernacular of my

generation, told them to 'get their act together'?"

Mr. Walsh's response is, "I have no knowledge on that, no sir."

Assistant Director Walsh's testimony, which was given in his

"capacity as the FBI official in charge of the FBI budget, certainly cannot

be used to support the sentence quoted above. Mr. Walsh's testimony

was that he had no knowledge of the matters quoted in the footnote as stated

by Mr. Field. The Assistant Director of the FBI's Intelligence Division

and other Bureau officials charged with responsibility for the FBI's

, counterintelligence operations have an awareness, through their liaison with

• CIA, as to its counterintelligence group and the close coordination between

the two agencies designed to eliminate duplication of efforts. It is

submitted that Assistant Director Walsh's testimony cannot properly be

used to support the quoted sentence.

H₩ 55318 DocId: 32989710 Page 83

---

## Page 84

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 129, Lines 6 - 9

"A Committee staff accountant did a detailed study and determined that the

30 percent mark-up on the invoice seen by Mir. Kaiser was representative of all

such sales."

• Proposed Revision

A Committee staff accountant did a detailed study and determired that the

30 percent markup on the invoice seen by Mr. Kaiser was not representative of

all such sales.

Reason for Change

It appears the word "not" was omitted from the above sentence.

• A detailed study of FBI purchases of equipment from Martin L. Kaiser,

Inc., made through U. S. Recording Company, shows there were total purchases

between 4/5/69 and 4/7/72 totaling $101, 394. 70. Markup on these total

purchases averaged 14. 03%. Included in these purchases were three individual

'purchases totaling $2,106, which show a markup of 30%.

Copies of FBI purchases from Martin L. Kaiser, Inc., through U. S.

Recording Company, were furnished to Committee investigators and a detailed

study of these invoices by the Committee staff accountant could not possibly

have shown that a 30% markup on the invoice seen by Mr. Kaiser was

representative of all such sales, since there were only 3 invoices totaling

$2,106 with a 30% markup, whereas total purchases amounted to $101, 394. 70.

WW 55318 DocId: 32989710 Page 84

---

## Page 85

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 131, lines 9-11

"Interviews revealed that there was virtually no control

exercised over the confidential contracts between U. s.

Recording to the FBI."

Proposed Revision

Interviews revealed that FBI Laboratory personnel furnished estimated

cost of purchases from U. S. Recording to the Administrative Division

based on available industry sources, manufacturers' listed prices, and

knowledge of the particular area.

The Administrative Division relied upon

the judgment of Laboratory experts who were aware of the going price for

specific items and the reasonableness of the estimated cost.

Reason for the Change

To clearly portray the procedures utilized in our confidential

purchases from U. S. Recording as indicated to Committee investigators

during their interviews with Eugene W. Walsh, Assistant Director,

Administrative Division, and Jay Cochran, Jr., Assistant Director, Laboratory

Division. The statement that the FBI exercises virtually no control over our

confidential contracts with U. S. Recording is not factual.

HW 55318 DocId: 32989710 Page 85

---

## Page 86

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 131, lines 12-15

"Neither the Laboratory Division, which initiated the equipment

requisitions, nor the Administrative Division, which authorized the

requisitions, had any knowledge of the percentage markup being charged."

Proposed Revision

The following should be added:

It is not standard business practice or a practice of the FBI

to contact suppliers to determine their percentage of markup.

Reason for the Change

To show that it is not standard business practice or a practice of

the FBIto contact suppliers to determine their percentage of markup.

HH 55318

DooId:32989710

Page 86

---

## Page 87

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 132, reference No. 240. paragraph 1

'Interview with Mick Callahan, Associate Director of the FBI ..."

Proposed Revision

Mr. Callahan's name should be corrected to read Mr. Nicholas P.

Callahan.

Reason for Change

• Associate Director of the FBI.

To set forth correct and full name of Mr. Nicholas P. Callahan,

HH 55318 DocId:32989710 Page 87

---

## Page 88

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Rage 132, lines 16-23

"McMichael stated that pricing would probably never be checked

for fairness by his buyers on a confidential contract. He felt the

Laboratory Division was responsible for pricing of confidential

contracts. Interview with Mr. G. Speights McMichael, Chief of

Procurement Section, by J. B. F. Oliphant and R. Vermeire,

Dec. 9, 1975, copy on file with Sel. Comm. on Intell. "

Proposed Revision

McMichael stated that pricing was done by U. S. Recording and that

he relied on the estimates given to him by knowledgeable Laboratory personnel

and contact with U. S. Recording for its lowest price. He said the FBI

Laboratory was furnished a copy of each purchase order for review and had

nothing to do with pricing. The fairness of the price was a judgment call

on the part of Laboratory personnel who were familiar with what industry

was charging for a particular item. Interview with Mr. G. Speights McMichael,

Chief of Procurement Section, by J. B. F. Oliphant, Dec. 9, 1975, copy

• on file with Sel. Comm. on Intell.

HH 55318 DocTd:32989710. Page 88

---

## Page 89

Reason for the Change

To clearly indicate that the FBI Laboratory did not do the pricing

on purchases from U. S. Recording, and to show that the estimates and

fairness of price were based on the judgment of knowledgeable FBI Laboratory

personnel, In addition, Mr. R. Vermeire was not present during the

• interview of McMichael on 12/9/75 as indicated.

HH 55318

DocId: 32989710. Page

89

---

## Page 90

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 133, lines 13-14

"FBI's use of U. S. Recording represents a grossly inefficient

expenditure for intelligence equipment."

Reason for Revision

This is a self-serving statement and should be deleted.

We take

strong exception that our use of U. S. Recording represents a grossly

inefficient expenditure for intelligence equipment, and there are no facts.

to back up such a statement. Such a statement clearly indicates a lack of

knowledge of intelligence operations on the part of Committee investigators.

HW 55318 DocId: 32989710

Page 90

---

## Page 91

HOUSE SELECT COMMITTEE ON INTELLIGENCE DRAFT REPORT

Page 133, lines 15-18

"Similarly, the fact that the persons within the FBI responsible

for requisitioning and purchasing the equipment had no clear knowledge

of the chain of authority regarding the arrangement, is at best,

non-feasance. "

Proposed Revision

Some individuals within the FBI responsible for requisitioning and

purchasing the equipment had no clear knowledge of the chain of authority

regarding the arrangement.

Reason for the Change

The highest officials in the responsible FBI Divisions who are

responsible for requisitioning and purchasing the equipment did have a

clear knowledge of the chain of authority regarding the arrangement. It is

true that not everyone responsible for requisitioning and purchasing was

aware of the arrangement, but it would be unfair to even imply that this

constituted nonfeasance.

HH 55318 DocId: 32989710

Page 91

---

## Page 92

74.243

10943557

Page 208, lines 1 through 6, reads: In 1968,

FBI developed information that some individuals in the

Institute for Policy Studies (IPS) might be in contact

with fugitives associated with Students for a Democratic

Society (SDS). Ostensibly to develon leads regarding

the sugitives, IBI opened an investigation on the Institute.

Proposed Revision: An investigation of IPS vas

initiated on June 20,

1958,

by the Washington Field Office

of the IBI based upon information set forth in a com-

of the IBI.

source who had furnished reliable information in the past

that on May 27, 1968,

Arthur 1. Haskow of iPs, Washington,

D. C., had contacted

Jeft Jones of the lew york regiona

Office of SDS.

Waskow reportedly advised Jones that his

name had been included among 50 young, intelligent,

leftist militants recommended to attend a three-day

meeting of the Ioreign Policy Association (IPA) at the

New York Hilion Hotel, New York City, on May 27-29, 1963.

The source expected members of SDS to attend and possibly

attempt to dominate the meetings.

The investigation of

IPS was

initiated to determine its association with SDS

and what, if any, influence the New left, of which sDS

was an integral

part, had on the EPA.

Reason for Revision: The FBI did not open an

investigation on IPS in 1963 to develop leads regarding

the whereabouts of Weatherman fugitives. The Weatherman

faction of SDS did not come into existence until mid-1969...

subseguent to that, the Weatherman was involved in criminal

acts for which they fled in order to avoid prosecution

and did not become Federal fugitives until early 1970.

Therefore, to say we opened our investigation of IPS to

locate fugitives, is incorrect,

and the correct reason

appears

in the proposed revision above.

HW 55318

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## Page 93

Page 209, footnote 373 paragraph one reads: "Source,"

in Bureau parlance, may include confidential informants,

documents, public records, agent interviews, even

newspaper stories - ie.,

anything or anybody with

information on the subject.

Proposed Change: "Sources," in Bureau parlance, generally

incluca paid and unpaid informants or individuals who

furnish information to the FBI and who request or imply

that their identities be concealed. In many instances,

during the course of FBI investigations, individuals

furnish information from records and documents and when

furnishing this type of information, request or imply that

they not be identified as the source of this information.

Reason for Change: The definition of Bureau

"sources,

"" as detined in this report, indicates that the

FBI follows a policy of literally concealing all information

which is developed by this Bureau. This aspect is inaccurate,

inasmuch as the FBI has specific reporting guidelines

relative to the concealment of information developed.

furthermore, documents, public records and newspaper stories

are identified in Bureau communications as being the source

of the information set forth in that communication.

HH 55318

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## Page 94

Page 210, paragraph 2, lines 5-7, reads: It is

important to remenber that the whole probe began with an

investigation of alleged contacts between one iPS staffer

and an SDS member.

Proposed Change: It is important to remember that

the whole probe began with an inestigation of alleged

contacts between one IPS staffer and an SDS leader.

Reason for Change: The basis for the FBI

investigation of IPS is greatly enhanced when it is

accurately reported that the FBI's basis for investigation

of IPS was based upon the fact that an IPS staffer con-

tacted ar sDs leader and not a mere sds member.

It should be noted that the SDS leader contacted

in this specific instance, subsequently became a Weathermai

Fugitive and has been identified as one

of the primary

leaders of the Weather Underground.

HW 55318

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## Page 95

Page 211, footnote 330, reads as follows:

"Institute for Policy Studies

(IPS) is Dash RA. On August

two three last, Special Agent Robert W. leuer observed a

private trash truck picking up trash from IPS.

The

abandc..ed. SA Feuer obtained the

obtained from this source is

synbol number,

WF four eight six eight Dash S." Nitel cable to Acting

Director, FBI from SAC, WO, August 8, 1972.

Proposed Revision; FBI nitel (teletype) to

Acting Director, FBI, frOm Washington Field Office, dated

August 29, 1972, captioned "Institute for Policy Studies,

IS-RA," set forth information that on August 23, 1972,

a Specia

Agent of the FBI observed a private trash truck

picking up trash from IPS. The truck proceeded to a

burning dump, where the trash was abandoned.

The Special

Agent obtained the trash, and information obtained

from this source is being assigned a symbol number.

Reason tor Revision: On Novemper 14, 1975, the

Hoe was turnished an excised copy ot an IBi nitel datec

August 29, 1972, not August 8, 1972, addressed to the

Acting Director, from Washington Field Oriice,

captioned

"Institute for Policy Studies (IPS), IS Dash RA."

The

symbol number was excised from the document furnished

to the HSC, however, has been inserted by the HSc in the

IBI objects to the public release

number on the grounds that it is an

administrative procedure and could possibly do harm to

our existing informant program.

The FBI Iurther objects

to the public release of the Special Agent's identity on

the grolinds of privacy and to preclude him from being

subjected to public ridicule.

HH 55318

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Page

95

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## Page 96

Did saint.

Page 212,

paragraph 1, sentences 2 and 3 read as

follows:

"The trash revealed no information related to criminal

investigation. However, a used typewriter ribbon was found.

Even

I though there were no signs of crimes, and despite the

tact that ips itselt was not suspected of crimes, fBi

devoted time and money to the expensive process of

reconstructing the document that had been typed by the

ribbon."

Page 212, paragraph 2 reads as follows: "The yield

was almost entirely intimate sexual gossip."

Footnotes 382 and 383 refer to FBI Hashington

Field Office (WiO) report, October 19, 1972.

Proposed Revision:

A number of one-time, carbon,

typewriter ribbons were retrived from the trash of

IPS on

one occasion only. Some of the information from these

ribbons dealt with an individual's sex life. Although this

information was recorded, it was not disseminated outside

the FBI.

It is difficult to comment further on the above-

reterred-to statements round in the hsc report, since

the reference appearing in the footnotes does

not exist

according to FBI records.

A revieW

of the material turned

over to the HSC staff on

November Is, 1975 relating to IPS

reveals there is no report from WEO dated October 19, 1972.

A further reviev of the records at FBI Headquarters

reveals there is no report, Letterhead memorandum or other

document dated October 19,

1972, that was turned over

to the HSC staff. There are memoranda on file at the NEC

dated October 19, 1972, dealing with this one-time trash

cover,.

however, none of these documents were turned over to

the HSC staff,

however, it is believed some of these documents

were turned over to the attorneys for IPS in the current

lawsuit.

Proposed Revision, Part II: Although insufficient

evidence had been gathered to date to prove the existence of

a criminal act on the part of IPS, they were being investigated

to determine if their activities

statutes.

were in violation of Federal

AW 55318 DecId: 32989710 Page 96

---

## Page 97

Page 213, Par. 1, third sentence reads, "Only then,

after five years and no evidence of possible law-breaking or

2y third

even questionable associations, did the investigation become

inactive."

Proposed Revision:

After five years of investigation, no IPS members

were convicted for violation of Federal law.

Reasons for Revision:

Although the FBI was unable to prove a Federal

violation on the part of IPS, there was a basis in fact for

investigating this organization, not the least of which were

possible violations of Title 18, U.S. Code, 2383 (Rebellion or

Insurrection), 2384 (Seditious Conspiracy), 2385 (Advocating

Overthrow of the Government and 2101 (Antiriot Law.

Furthermore, there were some questionable associations between

IPS and other individuals who were being investigated by the

TBI, including members of the Weatherman faction of SDS, who

currently members of the Weatherman Underground Organization.

The investigation of IPS was, therefore, for the purpose

of keeping the U.S. Government apprised of the activities of this

organization and its members to determine if there was a

violation of U.S. laws.

IH 55318 DocId: 32989710

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## Page 98

Page 214, lines 15-18, contains the following

statement:

"However, the FBI has been unable to prove any

illegal or questionable relationship between the SWP and the

Fourth

International."

Proposed Revision:

потісття

The relationship beireen the SVP and the Fourth

International was shown in cr: inal proceedings against

several SWP members in 1941

and is at issue in a pending civil

lawsuit which the SWP filed

agains the Attorney General, the

FBI, and other Government agencies and officials.

Reasons for Revision:.

WHALEN-THEETA

In Dunne V. United States, 138 F 2d 137 (1943), the

Eighth Circult Court or Appeals considered the relationship

between the SWP and the rourth International and the SWP's claim

that it had dissolved their allegiance with the Fourth

International.

The court concluded,

"Even as to the voorhis

this action was merely a subterfuge and smoke screen."

Another quote

organization while also following Trotsky's teaching that

communism cannot be

established with lasting success as an

isolated phenomenon in one country alone. The court said,

"When they use words which may or may

not mean the forbidden

thing, they intend

just one thing and that is to squirm

through the statute leaving a haze which

they hope will make it impossible or

difficult to find any fracture by their

passage."

Te folder national contina do bette weren

Trotskyist revolutionary organization and is presently headquartered

in Brussels, Belgium.

Although claiming to have withdrawn from

formal affiliation in

1940, the SWP continues to maintain a close

association with the FI and participates and

votes as a

"sympathizing group" in FI meetings.

Evidentiary material in FBI files sets out the current

position of the SWP.

Included in this material are official

SWP documents such as "The Decline of American Capitalism;

Prospects for a Socialist Revolution" which was approved by

the 26th National Convention of the SWP and appeared in a

special issue dated November 7, 1975, of the

"International

SWP newspaper.

socialist Revelt contains the following:

"monthly supplement of "The Militant," the

HH

55318

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КИЙ """У".

FIX MANe to 1p9s

---

## Page 99

"The Marxist model for constructing a

revolutionary program in the imperialist

epoch is the founding document of the

Fourth International, the world party of

socialist revolution, founded by leon Trotsky

10 1 938."

"The Socialist Workers Party is inter-

nationalist to its core.

Not only are

world developments shaping the coming

struggles at home, but the American

workers'

enemies are the exploiters on

a world scale.

The perspective of the

Communist Manifesto-'Workers of the

world,

unite - renains oux fundamental

While reactionary legislation

Breciudes formal affiliation to the

Fourth International, the Socialist

Workers Party, since

its founding has

been an integral political component

of the world party of socialist

revolution."

During

testimony given to the Select Committee on

Intelligence on November 18, 1975, Mr. W. R. Wannall was

in the process of quoting from the above

document to the

Committee when he was interrupted and another line of

questioning was pursued.

In July of 1973, the SWP and the YSA and 15

individual plaintiffs filed a massive civil suit alleging

that the defendants, numerous governmental officers, including

the Director of the

FBI, have denied them constitutional

rights as a political

party. They seek over $27 million

damages and broad injunctive relief that would prohibit

the FBI from any effective investigation of them.

This suit

is still in the discovery stage and the Government has been

required under court order to turn over numerous documents

to the SWP and the YSA.

The Government has not made any

of these documents public but the SIP and YSA have released

selected documents to the media which has resulted in wide

The main issue in this case is whether the

Government has the right to investigate these groups and what

investigative techniques the Government may use. The

relationship between the SWP and the Fourth International

is also at issue in the lawsuit.

55318 DocId:32989710 Page 99.

---

## Page 100

In 19?4, the YSA, as part of the same lawsuit,

sought to prohibit the FBI

from sending informants to its

National Convention, its highest ranking body where its

major policy decisions are made.

The lower court

granted an injunction but the Appellate Court reversed the

lower court and Justice Marshall

affirmed the

Appellate Court, allowing the FBI to continue its use of

informants until this lawsuit is finally resolved. As the

Court of Appeals stated in this case,

"The FBI has a right,

indeed a duty, to keep itself informed with respect to the

possible commission of crime; it is not obliged to wear

blinders until it may be too late for prevention."

(Socialist Workers Party, et. al. V. Attorney General of

the United States of America,

êt.

al.; 510 & 20d 253 (1974).)

All of the above information has previously

been made available to the Committee by the FBI.

NW 55318

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•3.

---

## Page 101

Page 215, lines 1-3, contains the following

statement:

"FBI's failure io unoover even one questionable

activity by this political party is not from lack of effort."

Proposed Revision:

The failure of the FBi to uncover questionable

activity by this political party is not from lack of effort.

Reasons for Revision:

The relationship between the SWP and the Fourth

International is a questionable activity. The use of the

words "even

one" is therefore inaccurate.

• *

WW 55318 DocId: 32989710 Page 101

---

## Page 102

.

Page 215, lines

5-8, contain the following

statement:

"On November 5, 1975, FBI officials

testified that the Fourth International itsell was a

body made up of isolated Marxist elements around the

worid."

Proposed Revision:

On November 5, 1975, FBI officials testilled

that the Fourth International

itself was a body made

up o1 Marxist elements in many countries of the world

in close liaison with the movement in the United States.

Reasons for Revision:

• review of che testimony by Bureau cificials

on November 5, 1975, as cited in footnotes

389, 390, 395

and 396, indicates that the word "isolated" was not used

to describe Marxist

or Trotskyist elements around the

wOrLd.

Supervisor David Ryan testified "There are

Trotsiyite elements in many countries of the world in

close liaison with the movement in the United States"

(page 64, Lines 22-24 of the November 5, 1975, testimony).

Section Chier Robert L. Shackelford testified

"Participating Trotsky groups in the various countries

support the Fourth International as a governing body of

the Trotskyites" (page 65, lines 1-3).

The Fourth International was founded in 1938

at Paris,

France,

embodyingthe ideological position of

Leon Trotsky of "continuing revolution" in the application

of Marxism.

After Lenin's death in 1924, a struggle for power

took place between Stalin and Trotsky. Stalin was convinced

that communism in one country, Russia, was feasible and that

it was more important to secure communism at home first

before attempting worldwide revolution. Trotsky argued that

communism could not be established with any lasting success

as an isolated phenomenon in one country alone.

Therefore,

he reasoned that communists had to work for a world

revolution.

Thus one of the basic teachings of the Trotskyist

movement is directly contrary to the formation of a group

of isolated elements from around the world.

The inaccurate statement concerning the fourth

International is followed by a conclusion that "Significantly,

these officials demonstrated no detailed knowledge about

55318 DocId: 32989710 Page 102

---

## Page 103

the Fourth International." The interpretation which the

committee gave to the testimony concerning the rourth

International demonstrates a lack of even the most basic

knowledge of the Fourth International on the part of the

All of the above information has previously been

made available to the Committee by the FBI.

HH 55318 DooId:32989710

Page 103

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## Page 104

Page 215, lines 13-16, contains the following

statement:

"Equally as important, the FBI has found no

evidence of a Federal violation

committed by an SP

member, with the exception

of several Smith Act

violations in 1941."

Proposed Revision:

No SWP members have been convicted for violation

of Federal law with the exception of several Smith Act

violations in 1941.

Reasous for Revision:

Although it is correct to state that no SWP member

has been convicted for violacion of Federal law since 1941,

it is not true that "the FBI has found no evidence of a

Federal violation." (Emphasis added) Footnote 397 states,

"The staif has been given access to thousands of pages of

IBI investigative files regarding the SWP..." Those pages

contain the evidence which is the basis for the investigation

of the sHe.

An obvious distinction exists between the

amount and type of evidence required to justify investigation

and required

to prosecute or convict for violations of

Federal law.

The Government currently investigates the SWP and

some SWP members to determine the danger they pose to

national security. There are various Federal laws upon

which the Government bases its jurisdiction. These investi-

gations are based on information that indicates this group,

or individuals who are affiliated with it, is engaged in

activities which may involve violations of Federal statutes

including Title 18, U. S. Code, 2383 (Rebellion or Insurrection),

2384 (Seditious

Conspiracy), 2385 (Advocating Overthrow of

the Government), 2386 (Voorhis Act); or Title 50, U.S. Code,

781-798 (Internal Security Act of 1950).

The investigation of the SWP is, therefore.

Ior the purpose of keeping the U. S. Government apprised

of the activities of this organization and its members to

determine if there is a violation of U. S. laws. All of

the above information has previously been made available

to the Committee by the FBI.

WW 55318 DocId: 32989710 Page 104

---

## Page 105

Page 216, lines 2-4, contains the following statement:

"The investigation, which FBI officials tacitly admit has

• been

conducted largely under the aegis of an unprosecutable

statute,

Proposed Revision:

The investigation, which FBI officials tacitly admit

has been conducted partially under the aegis of an

unprosecutable statute, ..."

Reasons for Revision:

Footnote 393 indicates that the staff relied upon a

statement nade by SA David Ryan concerning the Smith Aci as

jis basis for

the conciusion that "IBi officals

tacitly adnit"

the investigation of the SWP has been

"conducted largely under

the aegis of an unprosecutable statute."

The TBI has relied on

the Snith Act as a basis forinvestigation. of the SHP but it is

only one of many

bases for the investigation.

The position of the

FBi on this matter was

furnished to the conmittee by menorancum

dated November 25, 1975, entitled "U.S. House Select Committee

on Intelligence Activities (HSC) Re: Federal Bureau of

Investigation Basis for Investigation of the Socialist

Workers Party and the Young Socialist Alliance."

The committee should not rely on what they consider to

be tacit admissions when the written position of the FBI has

been furnished to them.

HH 55318 DocId: 32989710 Page 105

---

## Page 106

Pages 218 and 219

Lines: Footnote #399

Report reads: One-fifth of all investigations initiated by

the FBI during the last decade dealt with internal security matters.

(Emphasis added).

Footnote reads: Overall, during fiscal years 1965 through

1975, security investigations averaged about 19 percent of all investi-

gative matters initiated by the FBI. A further breakdown of the above-

mentioned figure is classified because it includes counterespionage as

well as internal security matters. (From a statement by Elmer Staats,

Comptroller General of the United States). (Emphasis added).

Proposed revision: One-fifth of all investigations initiated

by the FBI during the last decade dealt with security matters.

Reason for change: The deletion of "internal" makes the

statement consistent with the footnote. Also it eliminates the

misconception that the 19 percent was all domestic since the footnote

indicates that internal security is something different from counter-

espionage.

ww 55318 DocId: 32989710

Page 106

---

## Page 107

Page 310, footnote 528, paragraph 2, sentence 1, reads

as follows: "We have trouble with definition of terms."

Proposed revision: This sentence should be deleted.

Explanation: The text of the above quotation indicates the

FBl is having trouble with definition of terms.

This is not correct.

A review of the transcript discloses a preceding question by a

Committee staff member which includes the comment, "... I know

this sounds simplistic..." indicating a communications problem

and the response by Mr. Wannall using the word "we" meant

Mr. Wannall and the staff member, not the FBI.

HW 55318 DocId:32989710

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## Page 108

Page 314

Lines 1 to 7

Report reads: CONTELPRO was a series of covert

counterintelligence programs aimed at identifying, penetrating, and

neutralizing subversive elements in the United States. Unfortunately,

the program itself consisted of myriad clandestine dirty tricks

carried out by FBI agents against persons and organizations

considered subversive by the FBI.

Proposed revisions: Cointeloro was a series of covert

Counterintelligence Programs aimed at disrupting, exposing and

neutralizing subversive, extremist, revolutionary, and/or violence-

prone elements in the United States. The programs involved a

variety of actions targeted for the above purposes against organiza-

tions and individuals based upon information developed by the FBI

indicating they were subversive, extremist, revolutionary, and/or

violence-prone.

Reason for change: The Cointelpros were not targeted to

identify or penetrate organizations and subversive elements, and this

description is an error. The phrase "myriad clandestine dirty tricks"

• is also erroneous as the released Department report on "FBI

Cointelpro Activities" dated November 18, 1974, indicates on page 11

in reference to Cointelpro actions, "The overwhelming bulk of these

activities were ciearly legitimate and proper undertakings within the.

scope of the FBI's ongoing responsibilities. . ." The programs were

targeted in areas in addition to "subversive" and our characteriza-

tions of the groups were based upon facts developed by investigation.

NH 55318 DocId: 32989710

Page 108

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## Page 109

Page 314

Line: Footnote #526

Report reads: The following are but a few examples of

specific COINTELPRO programs, of which there were a total of

3, 208 proposed and 1, 388 carried out.

Proposed revision: The following are but a few examples

of Cointelpro actions, of which there were a total of 3, 247 proposed

and 2, 370 approved and implemented.

Reason for change: It is believed the House Select

Committee intended to cite Counterintelligence Program actions

and the use of the word "programs" is technically inaccurate. The

figure 3, 208 appeared in the original Petersen Report, a copy of

which was made available to the House Select Committee, but this

figure in a press release made by the Attorney Geno al on

November 18, 1974, was corrected to read 3, 247.

we figure

1,388 as utilized by the House Select Committee pertains to actions

approved only in the program which targeted the Communist Party,

USA. Actually in the five basic programs 2, 370 actions were

approved.

HH 55318 DocId:32989710

Page 109

---

## Page 110

Page 316

Line: Footnote #528

Report reads: However, in the same interview, Mr. Ryan

appeared to contradict iMr. Wannall: "Mr. Ryan. As Mr. Wannall

suggested the overwhelming percentage of our investigations are not

those which would develop prosecution. We are looking for evidence."

Proposed revision: In the same interview, Mr. Ryan

upheld Mr. Wannall's contention in regard to statutory predication

for FBI investigations: "Mr. Ryan. As Mr. Wannall suggested

the overwhelming percentage of our investigations are not those

which would develop prosecution. We are looking for evidence."

Reason for change: The House Select Committee's (HSC's)

assertion that Ryan's statement is in apparent contradiction to prior

statements by Mr. Wannall regarding statutory predication for our

investigations is an erroneous distortion. Ryan's statement that

"the overwhelming percentage of our investigations" would not lead.

to prosecution does not indicate the FBI gathers "domestic intelli-

gence for the sake of intelligence" (text). It merely indicates a

realistic recognition that, in spite of our search for evidence, exist-

ing statutes, policies and procedures are not such that prosecution

is a viable end effect. The transcript of the interview also indicates,

immediately prior to the exchange cited in the footnote, Ryan as

stating "In every instance reports are furnished and a decision

regarding prosecution is made by the Department. " The evidence

being sought is, of course, evidence of violation of the predicating

statutes.

HH 55318

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## Page 111

ROBERT TARDY

1.

Page 321

2. • Line 9

The text states "He instigated the burglary and

supplied the would-be burglars. with tools, money,

technical assistance and encouragement."

The proposed revision: "He was aware of the

planned criminal activity before he first contacted

the FBI and supplied the would-be burglars with

some of the tools, money, technical assistance

and encouragement.

A great deal of the equipment,

money, technical

assistance and encouragement was

furnished by the others involved."

On June 24, 1972, Hardy first learned of

the planned criminal

activity concerning the Camden

Draft Board and, on June 25, 1971, he advised the

Bureau of the criminal activity which was the first

notice the FBI had concerning

: the proposed actions

of the Camden 28.

Complete details of the FBI-Hardy relationship have •

been furnished to the Committee and will substantiate the reason

for proposed revision.

HH 55318 DocId:32989710

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## Page 112

==

1 - Mr.

• A. Mintz

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

I - Mr. S. J. Miller

January 8, 1976

1

The Attorney General

Director, FBI

U. S. HOUSE SELECT COMMITTEE

ON INTELLIGENCE ACTIVITIES (HSC)

Enclosed is the original of a memorandum concerning

an interview of FBI Special Agent James H. Ave by an HSC Staff

Member. Also enclosed is a copy of the memorandum for

forwarding to Mr. James A. Wilderotter, Associate Counsel

to the President.

Enclosures (2)

62-116464

I - The Deputy Attorney General

Attention:

Michael E. Shaheen, Jr.

Special Counsel for

Intelligence.

Coordination

NI-III REC-3I

1 - 67- (Personnel File SA James W. Awe)

SJM: 1hb |ho

(9)

164154-280°

5 JAN 30 1976

ENCLOSUIS:

Assoc. Dir.

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

Admin. -

Comp. Syst. _

Ext. Affairs -

Files & Com. -

Gen. Inv. -

Ident. -

"iva

Inspection -

Intell. _

Laboratory

Plon. & Evol. -

Spoc. Inv. -

Training _

Legal Coun. _

Telephone Rm. _

MAIL ROOM I

IS A1826C14940989710

TELETYPE UNIT

Page 112

GPO: 1975 0 - 569-920

---

## Page 113

62-116464

1 - MI.

J. A. Mintz

1 - Mr. W. R. Wannall

1 - Mr. W. D. Cregar

1 - Mr. S. J. Miller

Jamary 8, 1976

U. S. HOUSE SELECT COMMITTEE

ON INTELLIGENCE ACTIVITIES (HSG)

RE; INTERVIEW OF FBI SPECIAL AGENT (SA)

JAMES W. AWE BY AN HSC STAFF MEMBER

The following concerns an interview on

December 3, 1975, of FBI SA James W. Awe by an HSC Staff

Member.

SA Ave was interviewed in his office on

December 3, 1975, by HSC Staff Member Iina Yonamoto.

She was specifically interested in the nature of the

Intelligence Information Handling Connittee (IHC) and

Its relationship to the U. $. Intelligence Board (USIB),

the extent of FBI participation in this committee, the

value of the committes and whether it should be continued,

and in determining if there was any FBI objection to

the fact that CIA serves as chairman of the committee.

It was explained that IHC is one of many

connittees of USIB.

IHC has as its general mission the

promotion of effective interchange of intelligence infor-

mation among the members of the intelligence community

fron a records management point of view. The Bureau's

participation in the activities of IHC has been limited

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -

Asst, Dir.:

Admin..

Comp. Syst. -

Ext. Affairs

Files & Com. _

Gen. Inv..

Ident..

Inspection

Intell.

Laboratory

Plan. & Eval. -

Spec. Inv.-

Training -

Legal Coun. -

Telephone Rm. -

Director Sec'y _

MAIL ROOM

TELETYPE UNIT

55318 DocId: 32989710

Page 113

to the status of observer with the exception of an effort

by ate tree teard unlion alication of proceites

.Agency Check Program. The committee has

been of value to the bureau in that it allows the bureau

to keep in, touch with other records managers throughout

the intelligence community, thus providing ready access

1 - 67- (Personnel File SA James W. Awe)

works

SJM: 1hb/hb

ORIGINAL AND ONE COPY TO AC

+(8)

SEE NOTE PAGE 2

Mill

28 Oo: 1060-080-130

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## Page 114

ITUSE SELECT COCITTICE D LTTELLTGZNGE AOLIVITINE (HSC)

13: TUTORNICE DE ODI SPECIAL AERIE (SA) JOES I, AID DE LEC

to inforcation regarding zécares pinblons, procccures, and

status of records eutomatinal. It is copocially inonstant

In maintain cortain standards so thore can ba an effective

Interchange of ininznation vithin the Intelligence community,

and this is porticulely importont as the varinus egencies

nt mcotings, the sharing of informatinn regerding reenads

problens, autonatinn efincts end the efforts tard certaln

data stondards has been and will continue to be important

Exon cost effective pnint ni view for all the members and

should result in goneral continnies for the entire Federal

Gnvertment.

It was explained that the fit has in objectinn to

CId's serving as chalman at the Illu cormittee, as the

Direcini: nf the Contral Intelligence gency (CLi) also

serves as the tirectnr nê Central Intelligence (ECI) for

the intelligence community. Enr CIa In continue In this

capacity would soen appropotate and the Ill would interpose

na nbjection insofar as IllC connittee activitles aze

concerned.

NOTE:

The results of the interview vere recorded in

memorandum V. L. Bailey to lir. McDermott, 12/12/75,

captioned "Houstudy," prepared by JWAievp.

WH 55318 DocId: 32989710 Page 114

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## Page 115

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING. '*

CLASSIFY AS APPROPRIATE

FROM:

TO:

Intelligence Community Staff

ATTN: Central Index

FBI

SUBJECT: Abstract of Information Provided to Select Committees

I. HOW PROVIDED (check

appropriate

for review

term.

If a document was made available

but not transmitted,

so note.)

DOCUMENT

BRIEFING INTERVIEW

TESTIMONY

OTHER

2. DATE PROVIDED

1/8/76

3. TO WHOM PROVIDED (check appropriate term; add specific names if appropriate)

The Attorney General with a copy for forwarding

SSC

to the White House

HSC

4.

IDENTIFICATION

(provide descriptive data for documents; five name or identification number of briefer,

interviewèe, testifier and subject)

Memorandun reporting the results of an interview by HSC Staff

Member of incumbent SA James H. Awe.

We a spous arbal requese art ian, meridfive, ssponte formal request, othor

ise state verba

8. CLASRMATION ON DE

NA

7. KEY WORDS (enter the appropriate key words from the list provided separately; if key words not listed are

used underline for emphasis)

Information handling

Operating procedures

8. SUMMARY (see reverse side before completine this item)

Interviewed regarding the nature of the Intelligence Inforuation

Handling Connittee and Its relationship to the U.S. Intelligence

aque of the extent e a parties pt don in this normate, the

62-116464

FMK: fmk

(4)

ORIGINAL VIX LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY

379| (6-75)

T 55318

DocId: 32989710 Page 115

TREAT AS YELLOW

CLASSIFY AS AEROLOG

4214841-280

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## Page 116

274-10043

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

• "FROM" entry should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy. of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate.

Any feedback or evidence of investigatory interests

should be noted.

Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required. Additional

pages may be attached if necessary.

42-0e.d

HH 55318

DocId: 32989710

Page 116

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