“complex are sub sidized completely by the Agency. PDLEDGER A small company in Europa which publishes a weekly periodical and disseminates this and other material to recipients in and: out of Russia; the various written materials produced 'for dissemination by the company ”
“- 32 - PI 49. MHRUCHE A Liechtenstein anstalt which is a general use standby asset; no employees. 50. MHCLUMP A Liechtenstein anstalt which serves as a standby asset . for general reinsurance use; no employees. 51. BGJASMINE A European insurance and reinsurance company”
“13-00000 ATTACHMENT B (6) Item No. 107, 128, 129, 279 MSS pp. 123, 132, 133, 403 ■ (S) CCS states that all four items which refer to Fairways Corporation as a CIA-owned proprietary company . are still classified since they describe intelligence sources and methods by iden”
“continue. Today, the CIA operates 45 major proprietaries, of which 25 are in the process of liquidation. The 16 biggest proprietaries did a gross total of $4 million business in 1975, compared with an average volume of $75 million annually in the heyday period of proprietari”
“13-00000 ATTACHMENT B (6) Item No. 107, 128, 129, 279 MSS pp. 123, 132, 133, 403 (S) CCS states that all four items which refer to Fairways Corporation as a CIA-owned proprietary company are still Classified since they describe intelligence sources and methods by identify”
“5 that individuals out in the field are not particularly astute at costing their contracts. Doole gave excellent advice in this area. Moreover, Doole was quick to advise when an operation is bordering on not being responsive to the demands of good/management. Houston, cited o”
“incorporated, paid taxes, all this type of thing. 23 Q The salaries of these people, although paid indirectly. 24 were paid by the CIA? 25 Photocopy from I Gerald Ford Library SECRET NW 50955 DocId: 32275518 Page 61”
“incorporated, paid taxes, all this type of thing. 23 Q. The salaries of these people, although paid indirectly. 24 were paid by the CIA? 25 Photocopy from Gerald Ford Library SECRET NW 50955 DocId: 32275454 Page 61”
“the equity in this foreign entity which constructed low cost housing in one of the less developed countries of the world. The Agency's equity was sold to WUPESKY, a private company which, provided cover for an Agency employee who managed the Agency's foreign low cost housing”
“incorporated, paid taxes, all this type of thing. 23 0. The salaries of these people, although paid indirectly. 24 were paid by the CIA? 25 Photocopy from Gerald Ford Library SECRET NW 50955 Docld:32204971 Page 61”
“corporation operating out of the residence of its president in Northern Virginia; the company provides cover for one Agency officer who provides behavior psychology assistance to the DDO. RECEIVED) FROM NOV 6 1975 -1]-- CIA V I, A KE1”
“13-00000 SCba%L1 DDA 77-2412 28 APR 1977 MEMORANDUM FOR: Mr. Halpern FROM: H. G. Bean Acting Executive Officer/DDA SUBJECT: Fairways Corporation REFERENCE: Attached memorandum from Central Cover Staff 1. With reference to paragraph 4 in the attached memorandum from ”
“- 44 - % 46 PDDYNAMIC A domestic based corporation with a German branch which fosters the aims of a nation alistic group within the USSR and publishes selected books and periodicals for distri bution to members of this nationalistic group. The New York and German offices ”
“- 19 - Those proprietaries which engaged in the shipment of weapons or other items on the Munitions Control list required Agency assistance in obtaining the necessary export licenses., The ownership of the companies was discussed with State Department Office of Munitions Co”
“grouped data package.' It lists the entirety of CIA real property holdings and personnel assets in the United States as of 13 January 1975; accordingly, release, unauthorized disclosure, or loss of this information would have severe' operational impact on the activities of CI”
“1000 (th i 2-/1 ri CLVlL ! IVE9 OM1 LILO 2. Interprogres Interprogres is a new subsidiary of the Mullen Company formed in 1971, as a result of contacts developed at the Zagreb Trade Fair in Yugoslavia. It is a pilot operation aimed at expanding East West commercial r”
“action taken by DCD on behalf of OER; we do not deem it pertinent but forward it for consideration. J. ITT: Attachment E contains what we consider to be all the data on DCD/ITT relationships relevant to the inquiry. k. Robert R. Mullen and Company: Attachment F is two requests (1”
“police supplies, and equipment. The Covert Procurement Staff has, had a .relationship withan officer .in the firm for over 15 years. The officer agreed to allow us to place orders through his corporation to major, suppliers of this equipment with a billing to an Agency nation”
“missions of these corporations in support of the national security of the United States would have been impossible if United States Government ownership had been officially admitted. Within this context it is the statutory responsibility of the Direct of Central Intellige”
“proprietaries. CCS files are unclear on the point, but there are indications that Director Colby may have responded to the question in a manner which could have been construed as admission of CIA sponsorship of Fairways. In any case, CCS files contain other evidence that the ”
“facility enables site audits of Agency covert projects by experienced Agency auditors. 67. VWCADENZA A Maryland company located in Bethesda, which is used as cover for an Agency employee who provides electoral and political analysis on South American and European elections; ”
“- 95 - VII. BEYOND ’'DOING BUSINESS”: PEAK NON-GOVERNMENT SECURITY INVESTMENTS BY PROPRIETARIES ACTIVE AS OF DECEMBER 31, 1974 As described infra, MHMUTUAL (the insurance and pension complex) has invested heavily in both domestic and foreign securities markets. Its portfol”
“writing and research talents are utilized exclusively by the Agency in support of overseas operations. This company is wholly subsidized by the Agency. WUDIRK A group of -three companies in New York which, provide cover for personnel assigned • to FR Division's New York Bas”
“support. As of March 31, 1972, that proprietary had invested $50,000 in time deposits. LPMANTLE is part of the WUTACTIC complex managed by the Cover and Commercial Staff to provide operational support mechanisms for DDO foreign operations. It is a Delaware corporation which ”
“Agency. Neverthe less, an indigenous employee of the entity, and a contact of the Agency Station in the country involved, was allowed to take over the name and clientele and continue the business. No commit ments or agreements were made for continued use of the business, ”
“- 45 - LPBYZAS/3 A European company with no employees which holds the Agency’s interest in another European company which was used in the past to provide cover for one Agency employee. This company is being retained solely for the purpose of holding an Agency investment. Un”
“ostensibly by an Agency employee whose journalistic services are utilized in support of foreign operations. Proprietary Management LPPANDA Complex The below three companies support a one man accounting and management company in Europe which provides services to other propr”
“frozen seafood importing company which operates in the Far East and provides cover for an Agency employee engaged in intelligence activities. The Agency provided $25,000 in capital to purchase and activate a dormant but long-established privately-owned United States seafood ”
“or companies in cover and supplying the JMWAVE Station with 4 1 0 F irst S treet, S.E., W ashington, O.C. 20003 20 .personnel or with equipment? 21 Mr, Halley. We are talking about all of these companies, 22 they probably went up into the hundreds. I distinguish between ”
“Co., made donations’ in the company names and the Agency notified the Com missioner of Internal Revenue about the donations so that they could be treated as corporate tax deductions. 7a/ - 209 - . TOP SECRET”
“-131- of some 26 CIA-owned companies. In country locations where physical contact with the nearest CIA station is not operationally discreet, proprietaries can provide pay outlets and other adminis- trative services for CIA personnel and agents. On occasion, firms based in ”
“w MEMORANDUM SUBJECT: Domestic Proprietary Companies Corporate cover, as managed by the Cover and Commercial Staff, is an appropriate support for pur overseas operations. To the degree that domestic proprietary or cover companies are required. a clear justification wi”
“21 - IV. A DESCRIPTION OF THE VARIOUS PROPRIETARIES The operational needs of the Agency have required it to venture forth into many areas where proprietaries were a perceived necessary vehicle. These areas have included air support, media publications. proprietary manageme”
“/ <MEMORANDUM OF -W DOES THE CIA POSSESS THE LEGAL AUTHORITY T.O SELL A WHOLLY-OWNED GOVERN-. MENT AIRLINE WITHOUT RECOURSE TO- THE FEDERAL PROPERTY AND ADMINISTRATIVE RECF FROM SERVICES ACT OF 1949, AS AMENDED? OCT 30.1975 I. FACTS CIA There exist two airline corpora”
“stringent in the extreme. ’ The disposal of proprietaries has also generally proceeded along legal and ethical lines with more than due concern for con flicts of interest. Most notable in this spectrum of actions was the degree to which the Agency tried and did in fact avoid”
“- 39 - 88. LPEPIC A Delaware corporation based in New York City with a branch office in the Far East which provides commercial cover to a con tract employee in the Far East targeted against foreign intelligence; net assets $27,265; one employee. 89. LPSHORE A Delaware c”
“-132- B. Size of U.S. Financial Stakes The size and variety of U.S. Government financial stakes in CIA proprietaries has already been described in great detail. The attached Table I gives an overview of proprietary income and expenditures over the years. Some 450 proprietar”
“to date, no use has been made of the entity by the Agency. MOMARRON This proprietary was established in the Far East • ; by two foreign agents of the Agency to provide support services for Agency-sponsored air opera tions. The company failed, at least partly due to embezzl”
“fund" (presumably referring to MHMUTUAL), the procedures for reimbursing the State Department for cover and support, proprietaries (how created, their justification, value and effectiveness), safe houses and."CA cadres." Mr. Anderson reluctantly agreed to Mr. Shackley’s re”
“-2- and covert activities; and they provide services not securely available through normal commercial facilities. Because these instrumentalities are established as private organizations, they must be established and managed, to the extent possible, in accordance with practi”
“the United States. The question was asked whether we ever used private investigators, and I said we normally used our own investigators. We have some relationships with private investigatory firms which provide cover f or our investigators and, secondly, we have a few firms which”
“tionship maintained with the IRS was basically a normal one. Houston recalled that in the mid-50's the company, Air America, received a notice that they were going to be audited by the IRS. Company officials came to the Agency and indicated that this might pose a problem in t”
“e other day and there are a couple of clarifications I would like to make. One, with' respect to the se curity investigations in the United States. The questio n w as asked whether we ever used private investigators, and I said we normally used our own inve st igator s. We have s”
“Manhattan which is styled as a management consulting firm; the entity will be dissolved in the near future as soon as other cover facil ities are available for the individuals presently covered by . the entity; used by New York Base personnel for employment attribution and ”
“ple of clarifi cat ions I would like to make. One, with' respect to the se cur ity in ves tig at ion s in the United States. The question was asked whether we ever used private investigators, and I said we normally used our own investigators. We have some relationships with priva”
“Agency and the National Transportation Safety Board. Specific problems were discussed, usually with the Office of General Counsel of the agency concerned by the CIA General Counsel. The Air Proprietaries dealt with State Department and the Agency for International Developmen”
“these companies that we had in 21 this insurance complex appeared to have the substance any 22 insraance company would be expected to have. Actually, the 23 t : whole fund for all of them was managed as a central fund under 24 410 First thissone project officer. On t”
“as well as in the interest of the U.S. Government to maintain another viable commercial air carrier. CONCLUSION and its real property owning The CIA acquired ownership of SAT shares of capital stock affiliate, by purchase of all outstanding was accomplished under the on ”
“14-00000 . Ramparts • 203 W. 107th Street, Ant. 4C New York City, New York 10025 ■ April 5, 1968 .r. Jc Rosapepe Pudie information Division Internal Revenue Service 1111 Constitution Ave., N.W.. bashin-ton, D.C. 20224 Dear Mr. Rosapepe: Ramparts Magazine is under con”
“- 93 - (j) DELICATE - security support for DDS&T project, consisting mainly of badging and entry controls, background investigations, and escort of sensitive material; this is the only such activity • currently being serviced by MHBOUND; (k) PINEAPPLE - physical surveillanc”