(kid)
lilllil
for Representative James LeachA
in Arkansas in the witni5
0 hours, in roomHouse Office Building, Chairman James Leachon Banking and Financial Services, andMcCormick,riefing, at Leach'sto the DCI, on allegations of [
Arkansas in the. Agency1 pacximpancs were:
Investigative Staff. Office of Inspector hief. Legislation Group, OfficeAtfairs; and the undersigned, nsa Frank Newton, Inspector General, andAffairs. ]
Leach began the briefing byhe was not. interested inew probe ofor suggesting wrongdoing by eithersince he served on the October Surprisewhere he was convinced that the Marcos' walkedbillion of dollars. Leach, however, did say herequest for the briefing on reports that havethe press that refer to secret foreign bank accounts held
by prominent people in Mena,
an Arkansas-Centered network ot
'uanKS tormea(see attached incoming letter).
Leach also said thateriod of time he had talked to
a lot of people regarding this issue. He said that most of the allegations contained within the articles were probably false, but he felt an obligation to look into Whitewater related allegations on behalf of the Banking Cornmittee. That said, some allegations may be credible, some totally unbelievable, but as information goes out to the American public in non-traditional ways, it becomes more believable.
3-with Frank Newton,
responded lu Luacirt* questions "regarding each Agency's current knowledge on involvement with any of the alleged allegations contained in his letter. Newton responded
to all of the questions posed in the incoming did, however,rief broadbrush
eqch
ftpPROVE0 FOR RELEASET? Ml
SECl
SUBJECT: Briefing for Representative James
Arkansas in the Late15
activities
capability 'oro conduct lts^runccion depends incooperation by others with CIA and thus far the IGlook into any of these allegations.
said as he understood the currenthoroughbeen conducted by CIA regarding PROMIS/Inslawto Systematics,ena, and Hadron, duringearlier timeframe. Also, he understood that thuslittle information had been found to be responsiveexact allegations contained in the current letter. J did say that the Agency had perhaps made
some connections within the larger picture of things. The Agency was aware of Barry Seal, but had no relationshio with him nor any records regarding his activities in Mena. "seal's association with the Drug Enforcement Agency (DEA) was widely publicized,
|as ror promis, tnat issue hadat xu-ueyui uy the Senate Select Coinmittee(SSCI) and the House Judiciary Committee The conclusion then and still is that thepurchased any INSLAW7PR0MIS software. I-
JChairman Leach was also informed thaF
had not touna any records related to Systematics ofbanking software firm,
SEC^t'
5
SUBJECT: Briefing for Representative Jamesin the iWg
after listening to the responses toquestions, proceeded to askegarding the issue, basically repeating many
of the issues already addressed. For those questions and responses, please see attached pagesraft memorandum provided by staffer Jamie McCormick and checked against the personal notes of the undersigned. The responses in the draft memorandum correspond correctly to the personal notes of the undersigned.
Leach concluded by once again saying he has an obligation to look into the matter on behalf of the Committee, and asked us to inform the DCI and DIRNSA that he may hold hearings on these allegations in the fall. (U)
The briefing lasted approximatelyinutes. Leach was informed that the Agency would continue to check its records, especially or. questions relating to:
eter;IA's relationship, if any, with Terry Reed; andhether the CIA had any connect ion to Seal's cargo plane (serial
r
/ ciA Liaison uroup Office of Congressional Affairs
Attachments
SUBJECT: Briefing for Representative JamesRegarding
Arkansas in the Latel5
isonGrp^
ion :
tts) phronotts)
CA RecordsCA1
With the Congress
Briefing for Representative LeachA1 on Allegations of
Onuly. Chairman James Leach, Committee on Banking and Financial Services, and staffer Jamie McCormick.riefing, at Leach's written request to the DCI. on allegations of
Arkansas-centered network of banks formed to
General.
rkansas in the. Leach based his request for the briefingthat nave appeared in the press that refer to secret foreign bank accounts heldpeople in Mena, Arkansas,an
Inspector General, andof Congressional Allans, along with Frank Newton,
JLVs Office of
NSA's Inspector General, responded to Leach's questions regarding each Agency'son involvement with any of the alleged allegations contained in his letter.all of the questions posed in the incoming letter, but did, however,
rief broadbrush background on how NSA conducts it normal daily activities
horough search had been conducted by CIA, and thus ;ar very
little information had been found to be responsive to the exact allegations contained in thedid say that the Agency was aware of Barry Seal, but had no
relationship with him nor any records regarding his activities in Mena. As for PROMIS, that issue had been look at in-depth by both SSCI and the House Judiciary Committee1he conclusion then and still is that the Agency never purchased any INSLAW/PROMIS software. Chairman Leach was informed that we had not found any records related to Systematics ofanking software firm f
Leach, after listening to the responses to his earlier questions, proceeded to ask approximatelyther questions regarding the issue, basically repeating many of the issues already addressed. Leach said he had talkedot of people regarding this issue, but he emphasized that he was aware that most of the allegations were false. Leach also said that be has concluded that some aUegations may be credible, some totally unbelievable, but as information goes out to the American public in non-traditional ways, it becomes more believable. He has an obligation to look into the matter on behalf of the Committee, and asked us to inform the DCINSA that he may hold hearing on these allegations in the fall. (U)
Responses to Chairman Leach's Prepared Questions1
Q: Have any of you or anyone else at either the CIA or NSA discussed this inquiry from us with anyone at the White House, the Department of Justice, or any other governmental organization?
A: No, not in response to Chairman Leach's lettersriefing.
Q: Does the CIA or NSA have knowledge of or any involvement in clandestine activity by. Government or any private parties in or near Hena, Arkansas, in?
A: CIA's knowledge NSA
Q: Have any reports on activities in and around Mena been prepared for the DCI, specifically, for former Director Woolsey?
A: No. The only reports the CIA has were prepared in conjunction with tho Chairman's requested briefing.
A. Gun
Q: Did the CIA or NSA have any involvement in, or knowledge of, any operation by. government or the so-called "private bone-factors" (led by retired Gen. Richard Secord) to train pilots and/or ship arms from the Rich ihter-mountain regional airport at Mena to the Nicaraguan Contras?
A:IA representatives replied that they "did not thinknoted that .the IG had checked back records on this issue4 and had discovered no responsive information. CIA noted parenthetically that the operational activities of tho private benefactors were mainly conducted from southern Florida.
Q: (Skipped) If so, did any such activities take placo with the knowledge or approval of other Federal officials?
Q: (Skipped) Did any such activities take place with tho knowledge or approval of Arkansas state government officials?
Q: (Skipped) Did the CIA contract with any Arkansas manufacturers to build automatic weapons for the Nicaraguan Contras?
Q: Does the CIA or NSA have any contractual or other relationship with, or knowledge of, an Arkansas company calledeter, also known as POM? Do you have any reason to believe that POM produced disposable fuel tanks for use by Barry Seal and possibly others in connection with supplying arms to the Contras?
A: NSA | | CIA had no knowledge, but would check and get back to
B. Barry seal and Associates
Q: (Skipped) Did the CIA or NSA have any contractual or other relationship with the late Adler Barrinan -Barry-Seal (Seal
of Columbian drug lords,
toWQ= Toknowledge, did any other governmentontractual or oCnor relationship with
A: NSA,j IA had no confirmation from any other USG agency, includfng-DEA, that Seal had any government contracts
Q: Is the CIA or NSA aware of any IRS determination that money earned by Seal46 was not illegal becausi or his alleged CIA-DEA employment?
A: NSA,f IA, no.
Did the CIA have any involvement in, or knowledge of, the installation of cameras onK transport plane for use4 "sting- operation against the Sandinista official Federico vaughan?
A: CIA, no.
Q: WasK cargo plane, christened Fat Lady (serialold by Seal to the CIA or anygovernment related entity? Was this the plane later shot'down over Nicaraguaoad of arms destined for the Contras?
A: CIA, no records suggested it was.
with Terryormer Air Force intelligence officer (who claims heelationship with the CIA in) and autho.
C1*anv contractual or other relationship
ifficernd author
of Compromised: Clinton. Bush and the cta?
A: CIA had no knowledge, but would check further.
Q: Did the CIA ever have dealings with former Arkansas State. Brown?
A: CIA no, not beyond as stated earlier in their presentation.
a. is the CIA or NSA aware of any attempts by federal or state officials to interfere with or terminate any invartigatiqn [by] the IRS, Justice Department, Arkansas State Police or any other law-enforcement authorities into Mena-relatad criminal conduct?
A: CIA, no. NSA,
C. Narcotics Smuggling
q- Did the CIA or NSA have any knowledge of orin illicit narcotics trafficking, possibly by rogue optatives in It near Mena, Arkansas? As you know there havecSed that on their return flights from Central America, pilots smuggled more thanons of cocaine into Mena.
checkedeASrT which reported no
V.- -
responsive information available.
D. Money Laundering
q: Did the cia or nsa have any indication that
businesses and Arkansas
no.
Does the CIA or NSA have any indication that Barry Seal or his associates attempted
no.
Does the CIA or NSA have any indication that the illicit narcotics
through the Arkansas Development Finance Authority
no.
Arkansas at anytime8 and now? NSA
Does the CIA or NSA know of anyin
a:
^or more ever heldS. citizens dooiciiea in
CIA representativesea"
that, to the best of their knowledge, CIA maintained the same policy. CIA also stated that any records it might have had would have been *"
q: (Not directly asked, referenced indirectly in jighth question in this section) Is the CIA or NSA aware, directly or indirectly, of any efforts by |
o: Does the CIA or NSA have the capability of
A:
^
such agency capability
/
capability, directly or tnrougti diiuii
does CIA and/or NSA have the er party, off
A: Newton stated NSA has
/Skipped) Does CIA or NSA have the authority to
q: (Skipped) Has CIA or NSA ever
Q: Does the CIAeam of skilled computer backers who routinely break into the electronic data systems of foreign banks? According to one source, this group is informally known as the Fifth Column. Correct?
A: J
(Skipped) Does NSA
Q: Does the CIA or NSA know of or has either agency participated in, directly or indirectly, efforts to sell softwarenotably versionsrogram in use at the Justice Department called PROMISor other devices to foreign banks for the purpose ofystems?
V
(Skipped) this software has
the CIA or NSA know of customers to whom been sold?
the CIA or NSA aware of any atfappf by
NSA,
no.
Has the CIA or NSA recoived any indication that proceeds from the sale of PROMIS or similar software were used to finance arms shipments to the Contrae?
A: CIA, no. NSA,f
Q: (Skipped) Are there any indicationsby
Q: (Skipped) Is the CIA or NSA aware of any unauthorized efforts, possibly in the margin of legitimate intelligence operations,
now
Q: Does CIA or NSA knowharles Hayes, who was born, whose social security number is resides in Nancy, Kentucky?
A: CIA, no. NSA,
0: If so, has Hayes ever had any ties to the CIA or NSA or any. government agency? Have these ties been severed?
A: CIA, no. NSA,
Q: Hayes claims to be able to break into the electronicof foreign banks. Has
A:
Q: Is NSA or CIA aware of.an account,t the Banca Delia Svizzera Italiano in Chiasso, said to have belonged to [the late] Vincent Foster?
At no.
Q: Does the CIA or NSA know of any secret Swiss bank account that used to belong jointly to Vincent Foster and others that supposedly contained contributions to the Clinton presidential campaign?
A: CIA, no. NSA,
Q: Is the CIA or NSA awareund known variously as the Medders or Meeders or Meadows or Meadors or Headers Trust or Estate? The fund was allegedly first deposited at Pittsburgh's Mellon Bank someears ago and is now reportedly worth billions. The allegation isegally ungovornod trust is under de facto controlank or group of banks under prospective legal challenges from alleged heirs and that income is so large that it is usedecret source of funds by banks and high-ranking officials for sensitive political and economic purposes. The money and its movements, it is alleged, ara hiddenomplex web of electronic transactions among the banks in the group.
A: CIA, no. NSA,
Q: Is it possible, and does CIA have any information that might suggest, that alleged Hena-related activities stemmed from private Nicaraguan assistance groups, perhaps under the supervision, or at least knowledge of, Colonel North? '
NSA, or around Mena
was not aware of any such activity in
Did either NSA or CIA ever request that any government organization cooperate or not interfere with aircraft operating out [of] Mena?
A: CIA, no. NSA,
Q: Is either the NSA or the CIA aware of any foreign governments who might have provided arms, money or any assistance to any group operating out of Mena?
no.
Original document.
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