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CHURCH COMMITTEE REPORTS

25
TESTIMONY OF HOWARD J. OSBORN, FORMER DIRECTOR OF SECURITY,
CENTRAL INTELLIGENCE AGENCY, ACCOMPANIED BY
JOHN DEBELIAS, COUNSEL
Mr. OSBORX. Senator Church, Senator Tower, and the other distinguished
Senators who are members of this committee, I am here today
at your invitation.
":\fy Federal seniee has extBllcled over a 32-year period;. 27 o~ those
years were spent with the CIA. I am proud of my serVIce WIth the
CIA, and I am proud of the thousands of dedicated men and women
with whom I worked in the CIA. I retired from the CIA on December
31,1974, after having been on sick leave from March 8, 1974, until
the date of my retirement.
;)Iy last 10 years of active service with the CIA were spent as the
Director of Security. I was responsible to the Director of CIA and
to the other senior CIA officials for personnel security and for the
security and protection of classified information, data and installations,
both in the United States and abroad. During my tenure as Director
of Security, I served successively under Mr. John A. McCone,
Admiral "William Raborn, Mr. Richard Helms, Mr. James R. Schlesinger,
and ~Ir. William F. Colby.
I do not nmv have access to CIA files and records. As I answer your
questions, please understand that my memory may be unclear or imprecise
as a result of passage of time, or because the knowledge I had
or have of the events being reviewed here was a general one and not
specific as to all details.
At all times, while serving as Director of Security, I acted with the
knowledge and approval and at the instruction of the Director of CIA
and in many, if not most, instances, ,,,ith the knowledge and approval
of other senior Agency officials in the chain of command. I should like
to emphasize that security in the Agency is a service and support
function and its activities are not self-generated.
Among other services, the Office of Security provided guidance and
assistance to employees with personal problems; it provided support
to other Agency components upon authorized request and performed
tasks and special inquiries assigned to it by the Director of CIA. The
Director of CIA was empowered and directed by the National Security
Act of 1947 to "protect intelligence sources and methods." By
virtue of and extension of that authority, those actions and activities
within my purview were designed to prevent potential penetration
of the Agency by hostile intelligence services, afford protection to the
Agency's domestic installations, and to determine the sources of unauthorized
disclosure of classified and sensitive intelligence information
to public media.
In retrospect, I feel that the charter of CIA was broad and general
and designed, perhaps, to permit a wide latitude of operations. As a
citizen, I am concerned that legislative efforts in the field of intelligence
may hobble organizations which must react quickly to new
requirements and provide our national leaders with a perceptive
appraisal of rth reats facing our Nation. I do not doubt that you gentlemen
will act in good faith in recommending new legislation to channel
and manage intelligence efforts. However, I hope you agree with me
that whatever form our intelligence agencies may take based on any
new legislation, there is an increasing, not diminishing, need to pro26
vide the President, the National Security Council, and the Congress
with hard, accurate, comprehensive, and timely intelligence.
In your review of the activities of CIA, over a long period of time,
I hope that you will look not only at its actions. but the possible
consequences of its failure to act.
From my own point of view, I have renden'd loyal service to my
country and to its citizens during all my Govemment senice. To the
best of my knowledge and belief, I have not acted at any time in my
CIA service in an unlawful manner nor have I acted in derogation
of my duty to the U.S. Government.
The CHAIRMAX. Thank you very much for your opening statement.
Mr. Schwarz will commence the questions.
Mr. SCHWARZ. Mr. Osborn, when were you Director of Security?
Mr. OSBORN. From .July 1, 1964, to March 8, 1974.
Mr. SCHWARZ. What function did the Office of Security play III
connection with the various mail-opening projects of the CIA?
Mr. OSBORN. The Office of Security acted as the physical entity which
conducted the acti vities.
Mr. SCHWARZ. You copied the exteriors, filched the letters, took them
off to another location for c,opying, copied whatever was opened, and
returned them to the mailstreams?
Mr. OSBORN. That is correct. It was done by Security personnel.
Mr. SCHWARZ. When I say filched the letters, I mean remo\'ed them
from the Post Office Department and took them to another location,
which was the CIA location for copying; is that right?
Mr. OSBORN. Right.
Mr. SCHWARZ. Now, during the time you held the position of Director
of Security, did you know about all the mail-opening projects?
Mr. OSBORN. I knew of only one at the time I accepted the position.
Mr. SCHWARZ. 1Vas there another one that went on during the time
you held that office which you did not know about?
Mr. OSBORN. No, not to my knowledge.
Mr. SCHWARZ. We will come to that in a moment. 'Was the project
in New York discontinued during your tenure?
Mr. OSBORN. Yes, it was.
Mr. SCHWARZ. Did vou know throughout your tenure that the project
was illegal? •
Mr. OSBORX. Yes, I did.
Mr. SCHWARZ. Now, why was it knocked off? .
Mr. OSBORN. It was terminated at my recommendation; part of the
genesis of my recommendation was a strong and overriding concern
of Mr. William Cotter, who was then Chief Postal Inspector. that the
project should be terminated. I communicated this to :\11'. Karamessines,
and, in turn, we met on \'arious occasions with the Director
then in the chair.
Mr. SCHWARZ. I want to discuss who :\fr. Cotter was and why he
had a problem in a moment, hut I would like to read to you from
page 39 of your deposition, starting at line 15, in which vou stated
to Mr. Karamessines the reason that it should be knocked off when
it was knocked off. Have you got that in front of you?
Mr. OSBORN. Yes.
Mr. SCHWARZ. I'm going to exclude the profanity unless you want
me to read it. .
Mr. OSBORN. Please do.
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Mr. SCHWARZ. You said to ::\Ir. Karamessines the following: "AmI I
went to ::\11'. Karamrssines and said this thing is illrgal as hell," then
I'm excluding something, "and we ought to knock it oft right now in
the light of ,,'atergate climate." Now, how did the 'Vatergate climate
help persuade the CIA finally after 19 years to knock oft' the program
which you knew to be illegal?
::\11'. OSBonx. I think it's because we believed that there would be tremendous
embarrassment to the Agency, particularly in light of the
'IVatergate climate, and it was.
Mr: ScrnvAHz. So, we l:an say, thank God for 'IVatergate on this
occaSIOn.
Mr. OSBORX. I'm not going to say that, but you said it.
Mr. SCHWAnz. It helped, didn't it?
Mr. OSBORX. The climate provided it, certainly, I would think.
1\11'. SCHWARZ. 'Vhat are you saying now? 'Yhat do you mean, Mr.
Osborn? What climate? What good did that do? Why did it help?
Why did you finally wake up to the problem? What was different?
"What were you afraid of?
The CHAIRl\L\X. Getting caught.
Mr. OSBORX. I think in the light of some of the disclosures during
the 'Yatergate sessions, that it came very fortunately to a lot of people's
attention that the Government shouldn't do things that were
illegal.
Mr. SCHWARZ. Did the Watergate climate lead to any other changes
in the CIA?
Mr. OSBORX. Not to my knowledge.
Mr. SCIHVARZ. Didn't it have anything to do with the instructions
which were issued in 1973 to knock off all kinds of programs?
Mr. OSBORX. I'm sure it did, yes.
Mr. SCHWAnz. You know the instructions I'm referring to?
Mr. OSBORX. I have seen them, yes.
M1'. SClIWARZ. It was the general group of instructions from the
Director.
Mr. OSBORX. Those are the onrs who were issued by Mr. Colby.
Mr. SCIHVARZ. Yes. Kow, let us talk about 1\11'. Cotter for a moment.
Had Mr. Cotter been in your office before he went to the Post Office?
Mr. OSBORX. Yes; he was a security officer in my office.
Mr. SCHWARZ. And he went to the Post Office in 1969, is that right?
Mr. OSBORX. Approximately then, yes.
Mr. SCHWARZ. And the project wasn't knocked off until 1973, is that
right?
Mr. OSBORX. That is correct.
Mr. SCHWARZ. So, his enormous concern about the program, as you
put it, couldn't have had terribly much to do with it, if it kept going
for 4 years after he went over to the Post Office Department, isn't that
right?
Mr. OSBORX. 'IVell , I think he expressed concern about it several
times. The fact that was apparent to me that it bothered him and he
knew about this, and that it was certainly not consistent with his
responsibilities as Chief Postal Inspector.
Mr. SCHWARZ. And he frequently discussed it with you and said he
felt badly about it, but, once again, nothing happened in this case for
4- years, is that right?
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Mr. OSBORN. I think I made the first recommendation to Mr. Karamessines
in 1971 or 1972. My memory isn't precise.
Mr. SCHWARZ. But you have been hearing about Mr. Cotter's problem
from the time he went to the Post Office, which was in 1969, isn't that
right?
Mr. OSBORN. That's true, that's true.
Mr. SCHWARZ. So, for 4 years this man apparently felt uncomfortable,
but the program just kept marching along, isn't that right?
Mr. OSBORN. That is correct.
Mr. SCHWARZ. Now, would you look at the document which is exhibit
4,1 please. It is a document dated June 3, 1971.
Mr. OSBORN. Right.
Mr. SCHWARZ. Memorandum for the record. Headed: "Subject:
Meeting at DCI's Office Concerning HTLINGUAL." That is the code
name for the mail-opening project, right? And you attended that
meeting, didn't you?
Mr. OSBORN. That is correct.
Mr. SCHWARZ. In that meeting, Mr. Helms said that he had briefed
Attorney General Mitchell, and that Attorney General Mitchell had
said he had no ha.ngups concerning the project. He was going to discuss
it with Mr. Helms tomorrow afternoon, but Mr. Helms also said
that he briefed Mr. Blount, the Postmaster General, and "His reaction,
too, was entirely positive regarding the operation and its
continuation." Did you have 3.. conversation with Mr. Cotter at some
time after Mr. Helms went to see Mr. Blount, in which the subject of
what was told to Mr. Blount was discussed between you and Mr.
Cotter?
Mr. OSBORN. Yes, I did.
Mr. SCHWARZ. And did Mr. Cotter express some doubt to you as to
what was, in fact, told to Mr. Blount?
Mr. OSBORN. I can't recall the details of our conversation, Mr.
Schwarz.
Mr. SCHWARZ. Well, could I read into the record to you and see if
this will refresh your recollection? From the bottom of page 78 to
the top of page 79 of your deposition the question was "Do you recall
Mr. Cotter ever telling you he's not sure as to what the Postmaster
General was briefed about?" and your answer was "It seems to me
that I recollect in connection with our discussion, it seems to me that
I recall some indication, I don't know how much he told them, but
whatever he told them, it certainly didn't hurt me. I think there was
some indication that he"-that must be Blount from the context, right?
Mr. OSBORN. No, I think it's Cotter, and the implications, the statement,
it certainly didn't hurt me, was Cotter's also.
Mr. SCHWARZ. Right. "I think there was some indication he didn't
know much detail and got the clea,r understanding that he didn't know
the detail, for example, that was reported in this memorandum."
Mr. OSBORN. That is correct.
Mr. SCHWARZ. I have one final question. Without using the name of
the country, were you advised during your tenure as Chief of the
Office of Security that the CIA wanted to engage in some mail project
concerning a. Far Eastern country?
Mr. OSBORN. Yes.
1 See p. 197.
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Mr. SCHWARZ. And did the Office of Security, in fact, set up in
San Francisco an order to do something with the mail concerning
that Far Eastern country?
Mr. OSBORN. It made arrangements with the local postal inspector
for other personnel in the Agency to inspect the mail, yes.
Mr. SCHWARZ. And were you told by the persons within CIA that
were seeking to set up that project that it was to be purely the photographing
of the exterior and was not to involve opening--
Mr. OSBORN. That was my clear understanding.
Mr. SCHWARZ. And is that what you told Mr. Helms when you
briefed him about that particular project?
Mr. OSBORN. I sure did. I'm sure it was.
Mr. SCHWARZ. And is that what you told the Post Office officials prior
to getting their permission to start the project in San Francisco?
Mr. OSBORN. That was the substance of my conversation with Mr.
Cotter, a very clear understanding.
Mr. SCHWARZ. And to make clear what you are saying, you told
Mr. Cotter that you wanted to do something with the mail in San
Francisco, but it did not involve opening?
Mr. OSBORN. I'm not sure I was that specific. I think I may have
said that it was a mail-cover operation.
Mr. SCHWARZ. What does mail cover connote to some expert in the
field?
Mr. OSBORN. Mail cover is photographing and examining externally
the piece of maiL
Mr. SCHWARZ. OK. Now, despite what you were told by other persons
within the CIA, what you say you told Mr. Helms and what
you say you told Mr. Cotter, did you subsequently learn that, in fact,
mail was opened in San Francisco?
Mr. OSBORN. Yes; I did in my home.
Mr. SCHWARZ. You don't mean it was opened in your home ~
Mr. OSBORN. No, no. No way.
Mr. SCHWARZ. What do you mean?
Mr. OSBORX. The person that was involved in the operation-I believe
in all three of the operations and I'm sure of that-we were
discussing it in the context of the activities of the Senate and the
House and the Rockefeller Commission, and he said, "You didn't
even know we were opening it, did you?" and I said, "I certainly
did not."
Mr. SCHWARZ. Did you feel you had been misled ~
Mr. OSBORN. Yes, I did.
Mr. SCHWARZ. I have nothing further.
The CHAIRMAN. Mr. Smothers ~
Mr. SMOTHERS. Thank you, Mr. Chairman.
The CnAIR~L\N. Concerning the discussion on the information you
reported to Mr. Helms, is it your belief that this information was
communicated further, Mr. Osborn ~
Mr. OSBORN. I have no knowledge of the Director taking it any
further.
Mr. SMOTHERS. You have no knowledge then of any conversation
which might have occurred between Mr. Helms and the Postmaster
General or anyone else regarding this matted
64-1363 0 - 76 • 3
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Mr. OSBORN. Regarding the San Francisco operation·~
Mr. SMOTHERS. Yes.
Mr. OSBORN. No.
Mr. SMOTHERS. Do you have any knowledge of any conversations
that may have occurred between }Ir. Helms, lUr. Blount, who was the
Postmaster General, or anyone else concerning mail openings generally?
Mr. OSBORN. None, other than that talk that we have already
covered.
Mr. SMOTHERS. Both your testimony and the testimony of others
indicated that this project was not only illegal but from the standpoint
of its take, if you will, wOlihless or close to useless in terms of
the yield. Is that still your opinion?
Mr. OSBORX. I can speak only for the immediate area of my responsibility.
the Office of Security; it nen'r was of great value to us. I
cannot speak for other consumers in the Agency.
Mr. SMOTHERS. As the Director of Security, was it your responsibility
to run this program?
Mr. OSBORX. It was our responsibility to do the actual work involved,
all the policy g-uidance requirements, directives, changes came
from the Counterintelligence Staff. It was their project. You might
liken it this way. Mr. Smothers. You might say that they built the
Cadillac, they drove it. I maintained it, I changed th(' oiL I g"f('ased it. I
saw that it was kept in running condition. I didn't know where it was
going and I had no authority to change it.
Mr. S~fOTHERS. I think we understand that.
\Vithout minimizing- the ver~' serious issues involved here, your
responsibilities to maintain and grease this Cadillac involved the
expenditure of government moneys. It involved some decisions indeed
about the efficierH'y of such an operation. In your capacity. then. as the
Director, as the one responsible for keeping the machine running, did
you not consider it a bit of an extravagence to spend money on something
that was worthless?
Mr. OSBORN. Yes. I did. As a matter of fact. I think it was in 1969.
my office was facirlg- the necessity of reducing onr keyhole slots. or
vacancies as we call them, and one of the top priority items I had was
the elimination of necessary position vacancies in New York to carry
out this project, because we got nothing from it. And I didn't see that
I should sacrifice other positions that were in the office for these. We
got no benefit from it at all. I was not successful.
- Mr. S~roTHERS. You were not succe&<;ful. \Vould it be fair to say
then that your approach, your role in this operation, was simply to
communicate to higher levels of the bureaucracy that we were wasting
money and effort, along with conducting illegal activities, and
simply to hope for something to change?
Mr. OSBORN. I reported my views on this to Mr. Karamessines. I
reported it to my immediate superior, Deputy Director for. I guess,
the report at the time. And in a meeting with Mr. Karamessines, Mr.
Angleton and someone else who I can't remember at the time, I made
the recommendation to the Director. Having done that I didn't feel
that I knew anything about it or that I wanted to know.
Mr. S)IOTIIERS. Do you belieYe, }fr. Osborn, that given your experience
in trying to communicate this information and trying to tell
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them that the maintenance that was being performed on this Cadillac
was worthless--
Mr. OSBORN. The maintenance was very good. The product was
worthless. In my opinion, as far as my office was concerned, I don't
want to characterize or evaluate the value of the other elements.
Mr. SMOTHERS. Does this experience give you any basis to help this
committee with how we might be sure that the kinds of recommendations
you made would be surfaced at a level where closer attention
would be paid to it, or are you satisfied it received close enough
attention?
Mr. OSBORN. I'm very satisfied that it received close attention by
the Director.
Mr. SMOTHERS. So, what we come down to then is a policy disagreement
between you and others on the worth of this information.
Mr. OSBORN. That is exactly right. But remember, I was just one
small consideration.
Mr. SMOTHERS. I think we understand your office.
Thank you, Mr. Chairman.
The CHAIRMAN. Your assessment happens, however, to correspond
with the assessment of the successive investigations conducted by the
Agency's own Inspector General's office, on the whole program.
Now, I am going to continue to follow the practice of turning to the
other Senators first, but I just want to read into the record the figures
that show how large a program this was through the years.
Beginning in 1953 and ending finally in 1973, the figures show that
there was a total volume of letters coming through the New York Post
Office that was subject to culling and opening and photographing by
the CIA, in this particular program, a total of 28,322,796. Of that
number, based as we have heard now on certain watch lists that were
established, but in the main, on random selection accounting for twothirds
of the inspections, there, was a total of 2,705,726 envelopes that
we,re, photographed plus 389,324 envelopes that we,re copied.
And the, number of those le,tters that were illegally opened and
whose contents were photographed came to 215,820, of which the
photographed contents were distributed as follows: 57,846 were sent
to the FBI; 31,436 were sent to the Soviet division of the CIA; and
57,894 were sent to other departments, largely counterintelligence departments
of the CIA.
I think those figures speak for themselves, that it was a program
that not only extended for a great number of years, but also was very
sizable. It was a very sizable volume of mail that was opened, photographed,
and distributed.
Senator Huddleston?
Senator HGDDLESTON. Thank you, Mr. Chairman.
Mr. Osborn, when you became Director of the Office of Security
you inherited this ongoing project. Prior to becoming Director, you
had been Deputy Director. ·Were you aware that during that time of
the nature of the mail-opening program?
Mr. OSBORN. Yes, sir, I was for two reasons; one" because I was
briefed on it when I became Deputy Director of Security; but beyond
that. immediately before I became Deputy Director of Security, I was
chipf of the Soviet-Russian Division in the operational component and
had been briefed and cleared and knew of it in that context.
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Senator HUDDLEsTox. Knew the full extent of it?
Mr. OSBORN. Yes; I had no idea of the volume. As a matter of fact,
I have not seen these statistics until my attorney and I went to the
Agency yesterday to review certain information which was declassified
and provided as guidance for what was classified-it's the first
time I have ever seen it.
Senator HCDDLESTOX. So, until that time, you had no idea of the
volume?
Mr. OSBORN. No; I suspected it was high, but quite frankly I ,vas
surprised to see the volume. '
Senator HUDDLESTOX. 'Vell, while you were greasing and changing
the oil and servicing this operation, did you have direct knowledge of
specifically what was being done by your employees in carrying out
this assignment?
Mr. OSBORN. No, sir, I knew they had a requirement list or a guide
list or a watch list. that they were checking mail against that list. I
never saw such a list to my certain knowledge during my tenure as
Director of Security. I saw only one piece of mail from this project.
Senator Hl:DDLESTOX. You did not know what specific methods they
were using, justhow, in fact, they were intercepting the mail ?
Mr. OSBORX. I think I knew the means, yes.
Senator Hl:DDLESTOX. You had an understanding?
Mr. OSBORN. Yes; when I became Director I actually went up and
examined the facility.
Senator HUDDLESTON. You did go up and see the operation?
Mr. OSBORX. Yes.
Senator HUDDI,ESTON. Did you go to the Post Office where it was being
intercepted or did you go where it was being copied?
Mr. OSBORX. No; I only went where it was being copied, which was
an annex or adjunct to my "Manhattan field office. "
Senator HUDDLESTOX. 'VerI' you called upon to approve or disapprove
the San Francisco project?
Mr. OSBORN. I was called upon-the proposal was made to me, I was
told that Mr. Karamessines had got Mr. Helms' approval. Because of
the sensitivity of it. I believe I recall mentioning it to the Director
personally, because I don't like secondhand information. I wanted his
personal assurance that he approved it.
Senator HUDDLESTOX. Did you understand that operation to be a
mail cover, that is, an examination of the exterior of envelopes, or a
full mail-opening project?
Mr:OsBoRN. It was my full understanding it was a mail cover.
Senator HUDDLESTON. And not a mail opening?
Mr. OSBORX. There was no mention of mail opening to me.
Senator HUDDLESTOX. It was your judgment that--
Mr. OSBORX. Until several months after I left the Agency.
Senator HUDDLESTOX. Until after you had left the Agency?
Mr. OSBORX. Yes, sir.
Senator HUDDLESTOX. 'Vas it your understanding that that was also
the understanding of Mr. Helms and Mr. Karamcssines?
Mr. OSBORX. It had to be because if it involved opening I most certainly
would have told "Mr. Helms. I never lied to Mr. Helms in my
life.
Senator HUDDLESTOX. 'Vho proposed this project?
33
Mr. OSBORX. A representative of the Agency's Technical Services
Division, which was then in the operational component, and a representative
of the Far East Division of the operational component.
Senator HFDDLESTOX. And he represented it to you as being just a
mail-cover operation?
Mr. OSBORX. That's right.
Senator Hl'DDLESTOX. You later found out that it was opening.
Mr. OSBORX. After I retired.
Senator HCDDLESTON. ,Vere yon still there, when the order came
down from the Secretary of State to suspend this operation dne to the
impending visit of our Execntive to an Asian country?
Mr. OSBORX. I don't recall this.
Senator HrDDLEsTOX. Yon are not aware of that?
Mr. OSBORN. No; I might have been aware but I don't recall it now.
Senator HFDDLESTOX. During yonI' tenure, were you aware that the
Agency waS purposely misleading the postal department which had
given approval only for mail cover and not for a mail-opening
operation?
Mr. OSBORN. Not during my time with the Agency, no sir. On the San
Francisco project?
Senator HFDDLESTON. vVell, either one.
Mr. OSBORN. I knew the New York project involved opening, yes.
Senator Hl'DDLESTOX. And it was kept from the postal officials that
yon were actually opening the mail ?
Mr. OSBORN. I think that is true, yes.
Senator HFDDLESTON. I believe you have testified that you contended
on several occasions that this project ,,"as not worth its risk.
Mr. OSBORN. Insofar as my office was concerned.
Senator HUDDLESTON. The risk to the Agency was too great for the
product that was being produced.
Mr. OSBORN. That's right. In evaluating the product again, I am
c\'aluating only as conccrJwd my own area of responsibility.
Senator HUDDLESTON. It was not your responsibility or your group's
responsibility to evaluate the actual mail that they copied, is that
correct ?
Mr. OSBORN. No, sir.
Senator HUDDLESTON. 'Vhat \vas your judgment of the value of this
operation to the FBI?
Mr. OSBORN. I ha\"e never talked with the Federal Bureau of Investigation
directly on the subject of the value of the product ·with them,
but I have been present when numerous senior officials of the Agency
have indicated that the Burean thought it was an invaluable project,
\'ery valuable to them.
Senator HUDDLESTON. Do you know of any instances that were cited
where it had been helpful to them in carrying out their responsibility?
Mr. OSBORX. Kot sp!?cific instances. Senator, no.
Senator HFDDLESTON. Thank you, ~fr. Chairman.
The CHAIR:\fAN. Thank you, Senator.
Senator Schweiker?
Senator SCHWEIKER. Thank you, Mr. Chairman.
Mr. Osborn. how did you do it? How did you open the envelope
mechanically? DId yon steam-kettle? ,Vhat phvsically was done?
Mr. OSBORN. I n!?ycr saw them open!?d. Senator. I saw the equipment
they used, but I never saw them open it. I can only speculate that they
34
used steam and other sophisticated devices in which they were trained.
Senator SCHWEIKER. I woncler if you would turn to exhibit 5/ Mr.
Osborn, the second memorandum dated December 22, 1971. I
realize that this is a little bit outside of your immediate province, but
because of your general knowledge in this area, I think you might be
able to explain a few things. This is a memorandum from the project
chief of HTLINGUAL, 1 assume, to some staff in the counterintelligence
part of the Agency. And here it is saying, "Subject: Handling
of Items To and From Elected or Appointed U.S. Officials. In
accordance with new policy confirmed yesterday ... no officials in
the above categories are to be watchlisted."
'Vere officials such as Congressman Or Senators or Governors prior
to this memo listed?
Mr. OSBORN. Not to my knowledge, Senator. I have only one bit of
information pertinent to this subject and that is that sometime in
1971-1 think 1971-my deputy in charge of many areas-but this
specific area, in New York in charge of field offices-brought to me a
copy of a letter which I believe was to a Congressman and I can't recall
who it was.
Senator SCHWEIKER. Is this when you hit the roof?
Mr. OSBORX. Yes.
Senator SCHWEIKER. All right, go ahead.
Mr. OSBORN. I took it up 'with the Director. It may-I don't knowit
may have been the genesis of this memo.
Senator SCHwEnn:R. And why did you hit the roof and what did
you do about it?
Mr. OSBORX. Because I didn't think we had any business opening
mail to Congressmen.
Senator SCIIWEIKER. And you went to "'hom ?
Mr. OSBORX. I showed it to Mr. Helms, I believe, I can't recall.
Senat-or SCHWEIKER. 'Vhat did he say?
Mr. OSBORX. I can't recall.
Senator SCHWEIKER. 'VeIl, this memorandum says that from now on
we will continue to intercept Government officials, elected or otherwise,
but we will do it on the same basis as everybody else. They will be
treated equally.
Mr. OSBORX. I first saw this memorandum yesterday, Senator.
Senator SCIIWEIKER. Right; I realize this is not your immediate
division. It says that we will not go out of our way to instruct people
to pick them up. but we will not forbid them either. so that our
chances are strictly at random. According to the figures, one out of
every 13 letters sent overseas during that period to the Soviet Union
was read or randomly opened. But it does set up a special procedure
called a special category, whereby the normal channels were closed
to VIP officials whose mail was opened. and it also sets up a procedure
whereby it is not itemized. It is not listed. sort of like a "Do Not File"
procedure, except that it goes to the Project Chief of Counterintelligence
and then only the Deputy Chief of Counterintelligence and the
Chief of Counterintelligence ean decide if 'i,t is going to be disseminated
further.
Are you familiar with any of this, or maybe indirectly aware that it
was going on ? .
1 See p. 199.
35
~fr. OSBORX. No, sir. No, sir. That's why I was shocked by the letter
from the Congressman.
Senator SCIIWEIKER. There is no doubt in your mind that--
Mr. OSBORX. Remember now, this project is located and run in the
Counterintelligence Staff.
Senator SCIIWEIKER. Yes. I recognize that.
)fr. OSBClHX. And it is very closely held because of its sensitivity.
Senator SCIIWEIKER. I think the interesting thing about the memo,
which you obviously were not in a position to confirm, was that as
recently as 1971 we ,,'ere saying that it is okay to read Senators' or
Governors' mail, but just do it in the regular channels and do not do it
ona watch list. Do it at random. If we catch them, then we will read
it and see if it is really worth passing on or not. And I guess it was
not until 1973 that it finally got terminated.
Mr. Osborn, in terms of when the situation came to your att~ntion,
was that triggered by the 1971 complaint of the scientific group?
~fr. OSBORX. Yes, I think that's when it really began to get in focus.
Senator SCIIWEIKER. 'What was your either knowledge or understamling
about it prior to that time, if any?
~fr. OSBORX. I'm not quite sure I understand the question, Senator.
Senator SCHWEIKER. This 1971 complaint brought matters to a
head and that is when you became aware of it; is thllit correct?
~fr. OSBORX. Right.
Senator SCIIwEmEH. Is this to say you ,,"'ere not aware of mail
openings prior to that time?
Mr. OSBOHX. Xo; I ,,'as aware of mail opening in 1960 when I was
Chief of the SR Division. and one of the consumers. and I became
aware of it in September of 1963 when I became Deputy Director of
Security. I became aware of Security's role in this project.
Senator SCHWEIKER. \Vhen matters came to a head, in terms of
things being terminated, or at least raising a fuss over it, then you
referred to that letter in the glassine envelope?
Mr. OSBORX. No. I related it more specifically to the letter Mr. Cotter
received from the American Federation of Scientists. He called
me about it and sent me a copy of the letter. I sent it to Mr. Karamessines.
That is when the general-as far as I was concerned-the general
activity to terminate or suspend the project was initiated. .
Senator SCHwEmER. ~Ir. Osborn, the FBI received a substantIal
amount of this material. Senator Church, you brought out the figures
where they got a high proportion of material. If it was valuable to
them, to your knowledge, why did the FBI not take it over?
Mr. OSBORN. I can only assume that--
Senator SCHWEIKER. \Vhat is your best estimate?
I realize, again, it is an indirect situation. But you did give some
testimony.
:Mr. OSBORX. I think no one in the Bureau would have gone to Mr.
Hoover with it.
Senator SCIIWEIKER. And did you not also----
Mr. OSBORX. And I think that's why they wouldn't take it over.
Senator SCHWEIKER. They were afraid Mr. Hoover would have said
it was improper and illegal and would have forbidden the Agency to do
that?
Mr. OSBORX. That would only be speculation on my part, Senator.
36
Senator SCHWEIKER. So they received the material, but they did not
want to be responsible for getting it?
Mr OSBORN. That is correct. I think this is one of the things that
irritated our Director.
Senator SCIIWEIKER. In view of the fact that so much of this has
gone on without necessarily the highest officials knowing, how do you
recommend that we could insure in the future that something like this
does not surreptitiously begin again, does not start up on the basis
of a few people at the lower level making a decision? \Vhat is your
recommendation as to how we can prohibit it on an absolute basis
in the future?
Mr. OSBORN. I think the recommendations made by the Rockefeller
Commission would be very useful and very helpful in eliminating this
type of activity.
Senator SCHWEIKER. Are you referring to any particular part of their
recommendation?
Mr. OSBORN. No. I happen to agree, generally, with most of them.
Senator SCHWEIKER. \Yhat is your concept of the proposal to have
an inspector general, who has a lot more power and authority than
the present Inspector General system, and would have access to almost
any component of an intelligence apparatus, to see if they were following
the law or were doing things that were either not in the charter or
were not legal? As a person who is experienced in the general area of
security, what is your reaction·~
~fr. OSBOHN. That is the one recommendation I have some reservations
on as to its effectiveness. I would much prefer that the legislation
governing the Agency be revised, be strengthened in wry specific terms,
delineating the Director's responsibilities, what he is to do and what he
isn't to do. I am a little concerned about the idea of a super inspector
general becoming ultimately an internal Gestapo, and I'm a little concerned
with the divisive effect it would have on the morale of the
Agency and its so-called effectiveness.
Senator SCHWEIKER. But here is a case where you had a letter, you
saw a glassine envelope. You hit the roof. to use your own words. You
talked to Mr. Helms; he apparently hit the roof, or was apparently
upset.
Mr. OSBORN. He never hits the roof. I've never seen him hit the roof
yet.
Senator SCHWEIKER. Maybe he just elevated his language a little
bit. But the impression you gave us was he gave a negative reaction to
the operation. Is that correct?
Mr. OSBORN. Yes; I think lw was a little concerned. If I recall-it
was a long time ago--but I think his reaction was one of concern.
Senator SCHWEIKEH. Then hmy can you say we do not need a strong
Inspector General or an authority of that nature to ferret out illegalities
and prevent this kind of rdivity from happening? I am a little
bit uncertain as to just how "e do this, if it does happen, without
some special authority of some kind.
Mr. OSBORN. \Yell, Senator, I think you can agree that the Xational
Security Act of 1947 is, perhaps, in this day and time regarded-and
I think properly so-as somewhat ambiguous. \Vhat we need is an act
that is not ambiguous, that says that the Agency has no internal security
functions, other than, hypothetically, the investigation and report
37
of its own employees, its applicants and so on. And I think if the
legislation had been precisely that clear, perhaps, ,,-e "ouldn't be in
this situation.
Senator SCHWEIKER. 'Yell, Mr. Osborn, I agree there are certainly
some questionable areas of that particular law. 'Ve would certainly
haye to re,ise it.
On the other hand, the mail law is ,ery clear. The mail law ,ery
specifically prohibits this kind of operation. And of all of the things
"e ha,-e seBn before our committee, I tlunk this is probably as specific
a prohibition as "e have come across. So ,,-hether it was in the charter-
I happen to think it ,,'as in the charter, because I believe it was
an internal security function whether it was to be performed. The
mail law was wry specific, and yet it did not get through the Director,
because the Inspector General recommended abandoning it. If you
do not give the Inspector General authority, how do you ever police
the Agency?
Mr. OSBORN. I think it might include-far be it from me to kach
a fox to suck eggs-but I thought you might include in such legis~ation
something that the Director of the CIA shall haw no authorIty
to abrogate existing law, period. And it doesn't say that now.
Senator SCIIWEIKER. Ko citizen has the authority to abrogate existing
la ws, if the law is clear and specific.
Mr. OSBORN. But no citizen also has the total authority to protect
the intelligence sources and methods without defining what it means.
I just think it is ambiguous. I think it could be much more direct.
Senator SCIIWEIKER. I just honestly do not see how you are ever
going to clean up an Agency without some kind of strong internal
authority, like an inspector genera1. That is just one Senator's point
of view.
That is all I have, Mr. Chairman. Thank you.
The CHAIRUAN. Thank you, Senator Schweiker.
Mr. Osborn, were you in attendance on June 3, 1971; at a meeting
in which Director Helms briefed Attorney General Mitchell and Postmaster
General Blount on this mail-opening operation?
Mr. OSBORN. 'Vas I present with Mr. Helms ? No, sir; I was not.
The CHAIR~L\N.'Vere you at a meeting at which Mr. Helms reported
on his ha,-ing briefed ~Iitchell and Blount?
Mr. OSBORN. Yes, sir; I was.
The CHAIR~L\N.And do you remember what Mr. Helms said at that
meeting?
Mr. OSBORN. I have the memorandum. I have had access to the memorandum
reporting of the meeting, and to me it is an accurate representation
of my recollection of the meeting, Senator.
The CHAIR:\L\N. And can you tell us, based upon your review of
that memorandum, what Mr. Helms said concerning his briefing with
~fitche11 and Blount?
Mr. OSBORN. No, sir; I cannot recall that far back in specific words.
The memorandum doesn't help me to remember that.
The CHAIR:\IAN. I.Łt us turn to the memorandum [exhibit 4 1
], that
you represent as being an accurate document, and its paragraph 2,
where it reads:
1 See p. 197.
38
~Ir. Helms stated that on ~Ionday he had briefed Attorney General ~Iitchell
on the operation. Xote: )Ir. Helms may have meant Tuesday, .Tune 1, )Ionday
having been a holiday. ~lr. Helms indicated that ~Ir. ~Iitchell fully concurred
with the value of the operation and had no hangups concerning it. 'Vhen discussing
the alh'isability of also briefing Postmaster General Blount. ~Ir. )Iitchell
encouraged )Ir. Helms to undertake such a briefing.
And going on to paragraph;):
The DCI then indicated that 'ypsterday, the 2nd of .Tune 1971, Iw had seen
Postmaster General Blount. )Ir. Blount's reaction, too, was entirely positive
regarding the operation and its contjnuation. He implied that nothing needed to
he done and rejected a momentarily held thought of his to have someone review
the legality of the operation, as such a review would, of necessity. widen the
circle of wittirng persons. :Mr. Helms explained to the Postmaster General that
)Ir. Cotter, the Chief Postal Inspector, has been aware of the operation for a
considerable period of time. by virtue of having been on the staff of the CIA's
Xew York field office. )Ir. Helms showed the Postmaster General a few selected
examples of the operation's product, including an item relating to Eldridge
Cleaver, which attracted the Postmaster General's special interest.
Now, based upon your review of this document and whatever memory
you have of the occasion, was it clear to you that Mr. Helms had
told the Attorney General and the Postmaster General about the actual
letter openings, or had he told them simply about the mail recovery
operation?
Mr. OSBORX. It is my recollection, which is particularly reinforced
since he showed them examples of the operation's product, that he
did tell them it involved opening. I cannot be positive of that, but
I seem to recall it.
The CHAIR~fAX.That is your best recollection?
Mr. OSBORN. My best recollection.
The CHAIRMAN. I think that is important for the record, in view
of the witnesses we will have tomorrow.
I would like to ask you another question concerning Mr. McCone.
It is our understanding that Mr. McCone has said that he knew nothing
about the mail opening operation while he was Director of the CIA
and that he heard about it for the first time just before he appeared
before the Rockefeller Commission. I would like to ask you, Mr. Osborn,
do you know if Director John McCone had full knowledge of
these mail-opening programs while he was Director of the Agency?
Mr. OSBORN. No, sir, I do not.
The CHAIR~fAN. You do not know?
Mr. OSBORN. No. I never discussed this particular activity with Mr.
McCone. My tenure under Mr. McCone was very brief.
The CHAIRMAN. '\Vould you have had to approve the program costs,
as a part of the annual budget review, and would those figures have
gone to the Director in the normal course of the CIA's procedures?
Mr. OSBORN. I would not haw had to approve this. This was the
particular responsibility of the Counterintelligence Staff and the
Deputy Director for Plans, as it ,,'as known at that time. Budgetary
figures, I am sure, went to the Director through Colonel '\Vhite, who
was Executive Director of Control that would generally handle the
budget area exercises for the Agency.
The CILUR~L\X. Do you know whether or not the budget figures
would have been broken down in such a way as to give knowledge of
this program to anyone reviewing them?
39
Mr. OSBORX. Ko, sir. I would have no specific knO\yledge of that. I
could speculate and assume they were, but that is pure speculation on
my part.
The CH,UR:\L\X. Very well, I will not press it, then.
I have no further questions. If the committee has no further questions,
I want to thank you very much. And I would announce that
tomorrow we will have thE' former Postmasters GE'neral Day, Gronouski,
and Blount, who served during the period. 1Ve also would have the
former Chief Postal Inspectors Montague and Cotter as witnesses
during the morning session. And in the afternoon session, we will call
again on Mr. Richard Helms.
The hearing stands adjourned until 10 o'clock tomorrow morning.
[1Vhereupon, at 12 :44 p.m., the committee was rocessed, to reconvene
at 10 a.m. 1Yednesday, October 22,1975.]
 

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