Approved For Release 2 3 .iitilR T973 ?uoefaswuj TA p, L65 7114?! nm 792: Riyal}: . of The b?i?asisiasg?ton Merry-?n-Romnl ByJock Anderson and Les {Written For years, the Central Intelligence A'gency has known all about illegal foreign payofi?s by multinational cor- porations. The partments, too, were at least aware that foreign leaders were being systemat- ically bribed. . life-have pieced together the story from several government sources. It was standard policy, they report. for the multinationals to keep in con- tact with the CIA about information that would be helpful in securing con- tracts abroad. Our sources recall that Lockheed representatives, for example, participated in briefings with the CIA in various ES. embassies. Like their holdings, the power of these great multinational. multibil? lion~doliar consortiums extends be- yond any national boundaries. Some have become governments unto them- selves, with their own foreign service, intelligence apparatus, secret codes and other governmental trappings. Some corporations, including Loci:- heed, have used a secret intelligence group composed of former CIA agents in London. Although Lockheed claims to have cut its ties with the group, our sources say the secret organization is still operating. . CIA officials, questioned behind closed doors by Sen. Frank Church?s 'subcommittce, denied any knowledge of the foreign payoffs. The agency, nevertheless, provided the subcom? .mittee with a biography of Yoshio Kodama, Lockheed's $7 million con- sultant in Japan. We have also established that the tale Department lrepttabs on multi- tate and Defense tier 2* a national dealings. including the under- the-tabie payments. Foreign Service officers made it their business to know whom the corporations were dealing with on foreign soil, informed sources swear. Yet for the record. the State Department also has denied any knowl- edge of the bribery. The Defense Department also main- tained a secret list of foreign agents who received commissions on defense contracts from multinational corpora- tions. The military brass should have been aware from the list, say our sources, that illegal money was being slipped to foreign bigwigs. - Incidentally, our sources acknowl- edge somewhat ruefully,r that the bri- bery often produced contracts. White House Revolt President Ford?s speech researchers threatened to well: out en masse just as he was hitting stride in his political campaign two weeks ago. if the five researchers had quit, Mr. Ford would have been deprived sud- denly of experts who search out the facts not only for his politiical speeches, but for his foreign and do- mcstic pronouncements. They also pro- duce research for the White House staff on a variety of subjects. The squall blew up in the office of Robert Hartmann. the veteran Ford aide, who supervises presidentai speech writing and theresearch that goes ll?ltO it. .9 ?lter three unhappy Speechwriters quit last December, Hartmann reor- ganized his office. As part of the change. be assigned a trusted political aide, Gwen Anderson, to supervise the researchers even though she has little research experience. Home mediator. 5 5 . 71/ 91:10 15.. - 9 Cid rinses oi Hermeneutics agrees Anderson tangled with the respected White House research chief. Agnes Waidron. and tried to fire her. ?When li?alclon?s loyal staff heard the news, they all threatened to quit, with var)"- ing degrees of vehemcnce. But they deferred the walk-out until ?Waldron could get a hearing before Dr. James Connor, the amiable presiden- tial Cabinet secretary, who has also- developed into an informal White Connor, as diplomatic with staffers as he is with testy department heads, urged everyone to-"cool it" while a solution was worked out that would keep President, Ford supplied with research. At this writing, ll'aidron is still at' the White House. but there is no as- surance she will stay. Meanwhile,- is holding her own supervi- sion of the speech researchers to a cautious minimum. - Footnote: Hartmann could not be reached for comment. Some White House insiders blame him for the flare-up, while others say he is help- ing to resolve it. Anderson and Wei? dron did not return our ca is. Another Revolt?To appease the powerful friends in Congress, the House intelligence committee's criticism of the FBI was watered down*on orders of the staff chief, A. Searle Field. This caused a mini-revolt among the staff members who prepared the FBI section cf the report. lniuriated, they fired off an angry letter of protest to Field, charging that the weakened report was an ?unhappy structure," which "we don?t like." 3 1975. United Feature Syndicate. Inc. Approved For Release 2005/01/11: CIA-RDP88-01315R000300450031-9