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from:
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Click Here: <A HREF="http://www.prouty.org/">The Col. L. Fletcher Prouty
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-----

The Murders of President Diem and Kennedy

About three weeks after JFK had published NSAM 263 as an official document
from the White House, President Diem was killed in Vietnam. General Krulak
knew about the plans for the removal of the Diems from Vietnam. It did not
include killing anybody. The wife of Diem's brother, Nhu, had left Vietnam
ahead of time. She was in the United States on a speaking tour -- and a very
prominent speaking tour because she was called the Dragon Lady. Everybody
knew where she was. Nhu was supposed to leave and meet her -- I think in
Rome, because the other brother (who was a cardinal in the Catholic Church)
had gone to Rome also. And that left Nhu and Ngo Dinh Diem to leave: they
were going to a Parliamentary Union meeting in Belgrade and Diem had been
asked to be a speaker there.

So his departure from Vietnam was supposed to be the same departure any chief
of state would make who was going somewhere else to deliver a lecture and
make a visit. So a special airplane (a commercial airplane, not military) was
being flown into Saigon that day to take him to Belgrade, with his brother.
(The other brother had already left and Nhu's wife had already left.)
For reasons that none of us have ever known, the two Diem brothers went to
the airport, went up the stairs to the airplane and got in it, and came out
again. And, to the surprise of the few people there that knew they were
leaving (among them the people we had spotting this affair, that Krulak had),
saw them get back into their car and go speeding back into town (where they
went into the palace, the presidential palace), and suddenly realized they
were alone.

They were in some sense incompetent -- they didn't understand political
government. Their people had been so repressive that they knew as soon as the
Diems left they would be killed. The people would attack them. They hated
that guard that was around Diem. So they had all run. And when the Diems went
back into the palace it was empty. There was nobody there.
They immediately realized what was going on, and they went into a tunnel
(that had been dug for this purpose beforehand) that went under the river,
over to the suburb of Saigon called Cholon. Unfortunately, at the other end
of the tunnel, there were some soldiers there who had been ordered to be
there, and they put them in a van and they killed them in the van. And that's
how they were killed. It had nothing to do with the plan that had been laid
on for them.

I was in my office that afternoon and General Krulak came in and he was
absolutely blanched. He said, "The Diems have been killed." He said, "I can't
believe that they wouldn't follow the program we had lined up for them." He
said, "But we just had a call saying that they went in the plane, came out of
the plane, and went back to the city. Later it was discovered that they'd
been killed."
To the people that had carefully planned their movement out of the country --
and of course it was going to be a coup d'état -- maybe Diem felt that it was
and didn't want to leave, or something. But he was going to be out. He was
never going to come back. And maybe he sensed that, or maybe somebody had
tipped him off. We can't account for it. In fact, when Krulak turned to me
and talked to me about it, he said, "We'll never know what went through their
heads. They should've been smarter. They should've just kept going and they'd
have been out and they wouldn't have . . . "

If you remember, in the time of Watergate it was discovered that the Nixon
presidential advisor named Charles (Chuck) Colson had employed Allen Dulles'
old-time biographer Howard Hunt (and Bay of Pigs expert) to go into the files
in the White House (the confidential presidential files in the White House)
and doctor those files to make it appear that Kennedy had ordered the death
of Diem. That will show you how imperative it was to certain interests in
Washington to make it appear that Kennedy had ordered the death of Diem.
That's looking back: that was in '72, wasn't it?

Ratcliffe: '71 or '72.

Prouty: Looking back a decade, we find that kind of retroactive work was
going on. It's quite insidious when you think about it. But, the facts are
much, much different. Kennedy did not plan the death of Diem. And it was
stupid, it was unfortunate. But I was right where I could hear these
principals talking. I was writing documents for them, I know exactly what
happened.

And I think this business of being that close to the things that were going
on actually played an interesting part in my own life. Because, at just about
that same time, Ed Lansdale (whom I'd known since 1952 and who I'd been
working with since he came back to the Pentagon in 1956, every day) came to
me one day. He was still up in Mr. McNamara's office, and I was in the JCS
area then. I wasn't working right in his immediate office then. But he came
to me one day and he said, "Fletch, you've been working pretty hard and I've
got an approval to something that might be a nice paid vacation. How would
you like to go to the South Pole?" And I thought, I wouldn't mind a paid
vacation -- I don't know about the South Pole -- but if someone is going to
fly me down to the South Pole and all. So OK, I'd be glad to go. Then he
said, "Go over to the South Pole Office on Jackson Court near the White House
and talk to Mr. So-and-So." I went over there and I found out that they were
planning to fly a VIP party to the South Pole and they did need a military
escort officer. And I was being nominated for that, and I went to the South
Pole. Actually, I had been working for that Antarctic Office since 1958-1959.
I possess a Commendation, dated 1959, from them.

I was out of Washington from, I think, the 10th of November until November
28th, after President Kennedy was killed -- so that I was intimate with the
things that had to do with the death of Mr. Diem, but I was completely out of
the scene for the things that happened in the death of President Kennedy. And
it has occurred to me in the 25 years since that period that, in some way,
that spells some of the pressures that were going on in Washington at that
time: that it was better that I -- and people like me who were very intimate
with affairs in Washington -- had to be out of the way. I was sent there as
the Escort Officer for an industrial group who set in operation a nuclear
power plant at McMurdo Navy Base. It was an interesting interlude.

I came back from the South Pole on November 28th, 1963 and one month later I
retired from the service. I went in to General Krulak and said, "General, I
am through." I had been in the Pentagon nine years. The General was a bit
upset. He told me he had received information from the Air Force that they
were going to send me to Vietnam as the Chief of Intelligence in Saigon. I
have never tried to corroborate it, but that is what he told me. He said that
I was slated to become a general if I would stay on and take that job. And I
have never corroborated that; it is simply what he told me. I said, "I thank
you very much, General, I'm going to retire." And I retired on the 1st of
January and I went to work for a private company on the 2nd of January.

But that period of time, in those nine years that I have described (from 1955
until 1964), I think, are unequaled in history, at least in modern times.
Because I saw unfold all of these different actions that became the Vietnam
War, the death of Kennedy, and many other strange events that have never been
duplicated in the United States of America. It's really very interesting.

Explanation of the Office of Special Operations --
Military Services Providing Support
to Government Clandestine Activities

Ratcliffe: In Appendix I of your book, The Secret Team, you included a job
description you said was typical for you, regardless of whether you were in
the headquarters of the Air Force, the Office of the Secretary of Defense or
the Office of the Joint Chiefs of Staff.[2] I'd like you to read this for us
and comment on the types of activities this generalizable job description
covered for you in any of the three positions you held that were somewhat
interchangeable.

Prouty: From time to time, people have wondered and asked about this business
that we euphemistically call "special operations" that is the military
services providing support to the clandestine activities of the government,
usually clandestine activities that are at least nominally under the control
of the CIA. There are official papers on this, and I as said earlier that we
derive the authority from the NSC Directive No. 5412.[3]

In the process, the Secretary of Defense established an office called the
Office of Special Operations. And I'd like to read to you verbatim really,
and then describe parts of it -- what the Government felt about this kind of
work; because this was a perfectly public paper in the days when I first
acquired it, and it says quite a bit about the kind of activities that go on
in covert operations.

I believe that, at least from a policy guidance line, this would apply even
to the recent things that we call the Iran hostage/Contra affair. The people
were working along the same lines as this paper here. So we'll take a careful
look at it.

The following job description is taken from the U.S. Government Organization
Manual, 1959-1960, page 143. It's a typical government definition of the term
"special operations." It defines quite well the work that I was in from 1955
through 1963, whether it was with the Headquarters, U.S. Air Force, the
Office of the Joint Chiefs of Staff, or the Office of Secretary of Defense.
Now, I will read the next words as direct quotations from this government
operations manual.
The Assistant to the Office of the Secretary of Defense (Special Operations)
[who was General Graves B. Erskine of the Marine Corps, Retired; he was
Assistant to the Secretary of Defense, Special Operations] is the principal
staff assistant to the Secretary of Defense in the functional fields of
intelligence, counterintelligence (except as otherwise specifically
assigned), communications security, Central Intelligence Agency relationship
and special operations, and psychological warfare actions. He performs
functions in his assigned fields of responsibility such as: (1) recommending
policies and guidance, governing the Department of Defense planning and
program development; (2) reviewing plans and programs of the military
departments for carrying out approved policies and evaluating the
administration and management of approved plans and programs as a basis on
which to recommend to the Secretary of Defense necessary actions to provide
for more effective, efficient, and economical administration and operation
and the elimination of duplication; (3) reviewing the development and
execution of plans and programs of the National Security Agency

I'll break there for a moment. Most people don't realize that the two are
that closely allied: that Defense/CIA and the National Security Agency work
together. And that it was this Office of Special Operations that was
responsible for the reviewing, the development, and the execution of plans
and programs of the National Security Agency and related activities of the
Department of Defense; and (4) developing Department of Defense positions and
providing for Department of Defense support in connection with special
operations activities of the United States Government.

And I'll break there. That means that the Department of Defense operated as
effectively in clandestine operations as did any other part of the
government, or even more so. It wasn't CIA all the time, or NSA all the time;
actually the Department of Defense is the leader in all this work. This is
what this statement is underscoring.

In the performance of his functions, he [this Assistant Secretary of Defense
for Special Operations] coordinates actions, as appropriate, with the
military departments and other Department of Defense agencies having
collateral or related functions and maintains liaison with the Department of
State, the Director of Central Intelligence and the Central Intelligence
Agency, the United States Information Agency, and other United States and
foreign government organizations on matters in his assigned fields of
responsibility. In the course of exercising full staff functions, he is
authorized to issue instructions appropriate to carrying out policies
approved by the Secretary of Defense for his assigned fields of
responsibility.

And I'll break there. You see, that is what I was asked to do by General
White when I was asked to write the instructions and policies under NSC 5412.
And General White's authority was derived from the Secretary of Defense and
we're reading that here you see, the entire military establishment. So you
can see that this statement here covered everybody in the Department of
Defense, which would include the Air Force and all the others, and that's why
I was doing that work in 1955.

In the course of exercising full staff functions, he is authorized to issue
instructions appropriate to carrying out policies approved by the Secretary
of Defense for his assigned fields of responsibility. He also exercises the
authority vested in the Secretary of Defense relating to the direction and
control of the National Security Agency and related activities of the
Department of Defense. The Assistant to the Secretary of Defense (Special
Operations) is appointed by the Secretary of Defense.

Very important: he works for the Secretary of Defense. He is not there to do
the job of someone else (such as the CIA or any other group). He is a
full-time employee of the Secretary of Defense.
I would cite that last line to those people who have been reading the record
recently about the trial of Colonel North. Colonel North was working for the
Secretary of Defense when he worked for the NSC. And people shouldn't mix
that up. It's too bad that the courts and the congressional committees didn't
understand that distinction. But they should read this same paper: because
the military work under the Secretary of Defense when they're doing covert
activities -- not for some other office. Even though they might have a desk
in some other office, they are members of the military. Colonel North was
paid by the Marine Corps, not by the National Security Council -- that's very
important and they should keep this in mind.

This is a formal statement that describes what the Office of Special
Operations was doing and what it was responsible for. That's where I worked
for two years, that's where General Lansdale worked for two-and-half or three
years. It was the key office for the development of the DIA (Defense
Intelligence Agency) and it was the number one office for all relationships
on covert activities with the CIA, with the NSC, with the White House, and
with anybody else involved in this action.

It isn't explained there, but in the pursuit of this kind of business, many
other departments are involved. We had to work with the Treasury Department.
We had to work with FAA about the movement of aircraft. Sometimes we had to
work with Customs people regarding flights coming in when we could not allow
Customs to board the plane. They understood, but they had to know about it.
We had to have cleared people (what we called "cleared staff") there. There
were thousands and thousands of people involved in the network that's
described in this paper.
Most people, I think, feel that the clandestine activities are 10 or 15
people running around the world performing tricks, "fun and games." It's a
very large organization. In many respects all this talk about the closeness
between the Office of Special Operations and the National Security Agency --
this gave us effective communications all over the world.

Just like we heard during Colonel North's trial: he knew immediately when
things were being done (after they had given orders to have these things done
-- NSA can do that, NSA can listen in on anything, they know what's going
on). That's why the direction of NSA was put under this office -- so that we
would have a uniform, worldwide system for clandestine operations. It's a
very formal program.

The only area that isn't stated in that paper (and when I used to work there
I used to feel rather strongly that it wasn't really omitted but it wasn't
specifically cited) was the intricacies we had in handling money. If you're
going to steal money from a bank, you have to know where you're going to put
it afterwards. Money is very hard to hide. Money is very hard to steal.

When you're working in an organization like the Defense Department or the
U.S. government, it is extremely difficult to move sums of money because the
bureaucrats all know where that money ought to be. You don't take money that
is in the Department of Agriculture and spend it in the Department of
Commerce. You just don't do it. Well you don't take money that was ostensibly
appropriated for the CIA and spend it in the Defense Department or vice
versa.

The Economy Act of 1932:
Handling The Money To Run Covert Operations

As intricate as anything we did in the days we were in this kind of work was
handling money. I spent more time, on these papers that I prepared for the
methodology of handling covert operations,[4] in devising the money trails as
anything else.

That's why I feel in this current business about the Iran-hostage exchange,
when you hear these top people talking about the use of the Economy Act of
1932 -- they don't say the year -- they just say the Economy Act, what they
are really talking about is this very secret money channel that we
established for actual covert operations. It works all right. It's not
described in this document[5] at all. But it was a key to how this whole
business of covert operations worked. You've got to pay people all the time.

For example, you've got to buy helicopters. One of the situations we had: we
had planes going all over the world all the time. The usual system when
you're flying an aircraft all over the world is to use a credit card just
like the airlines do. The pilot buys thousands of gallons of fuel and puts it
on the credit card. But how do you put a credit card on an "Air America" CIA
airplane that really belonged to the Air Force? And, in the end, how do you
pay the bills?

We created a system for this. We created a system where every single credit
card turned in on these planes in the clandestine business around the world
would arrive at a certain computer center at Dayton, Ohio. From that computer
center in Dayton, it would fall into a certain box and we'd pay those bills.
Then we'd turn right around and charge CIA -- but we'd do it on internal U.S.
Air Force books so nobody knew it. Thus we could follow the movement of every
single airplane. If you can't do that, you can't run covert operations. As
you heard Colonel North trying to explain what they did, and he can't do it
-- it's because the system broke down. They had trouble with the system, they
need to go back and rethink the system. A very intricate system.

Ratcliffe: In other words, that level of indirection was essential to cover
what the money was really being used to pay for.

Prouty: Yes. The money we're talking about is nothing but numbers: so many
dollars in the Defense budget that moved into the CIA budget, or vice versa
and so many dollars from another budget moving into this budget. We never
touched a dollar, we never asked the Sultan of Brunei or anyone else for a
couple of million bucks as they say the "Iran-Contra" operators did -- that's
utterly ridiculous! If you're going to help some young kids in Honduras that
are called the "Contras," you don't go around borrowing millions of dollars
to give to some ex-Nicaraguan in a villa in Palm Beach! That's what the
Iran-Contra scheme was doing.

Those "cover story" operators were millionaires under the Somoza regime.
They'd like to be back again being millionaires under another regime. You
don't send them millions of dollars in checks and say, "Hey, spend this money
buying grenades." The ridiculous thing about all this -- how do you take
grenades out of an Army supply depot? How do you get some Army supply
sergeant to give you a truckload of grenades? You can't say to him, `Hey, I'm
going to take these down and give them to the Contras.' The Army supply
sergeant won't give you anything. You have to have a letter of authority and
it has to look like every other letter he's ever seen. You don't sell them
for $3 a piece to the Contras! You see how ridiculous all this stuff is?

During that Iran-Contra fiasco, if we just had a chance to take this one
directive, and explain it to Judge Gesell or to Prosecutor Walsh and let them
know what the facts of life are, they would have ended that problem in a few
days. They wouldn't even need the jury. It's just ridiculous the way this has
grown.

Ratcliffe: Isn't it also true that the whole scam of that trial is that, if
there was to be any trial at all that was correct, it would have been a
military trial? -- since he was in the Operations as a --

Prouty: We have to look at it several ways. If they reached the point in
coming down the levels, the first thing to know is to find out who really
made the decision and whether he had that authority. It wasn't Ollie North;
it wasn't Poindexter; it wasn't McFarland. They all worked for people. So you
have to go to the people they worked for and say, "Who made the decision?"

The man who said this Iran-Contra operation was done under the Economy Act
made the decision. Because, by saying it was done under the Economy Act, what
he is doing is opening the doors of the secret supply channel, which is worth
tens of millions of dollars. He had to have the money for it -- meaning the
money in the federal budget -- not cash on the barrel, and not cash he got
from the King of Saudi Arabia.

He made the decision to release the missiles, and not to sell them to
somebody -- in exchange for hostages. When you exchange the missiles for
hostages, you don't get any money; the hostages are the money, you exchange
for hostages. If somebody kidnapped my dog and said he wanted $100, I'd give
them the money and I'd take the dog. That's the deal!

The whole situation in this contrived Iran-Contra situation -- from the point
when McFarlane went over to Teheran with a cake and a Bible, the whole thing,
right there, was explaining itself as a weird, mixed-up exercise. You don't
do clandestine exercises that way. There was something terribly wrong with it
when it started with a cake and a Bible.

I bought that present for Diem that we mentioned earlier to put on his desk
because Lansdale was the guy that was going there; well even that felt pretty
strange, to be using U.S. money to put a trinket on President Diem's desk.
But it wasn't going to hurt anybody. But this Iran-Contra deal is the biggest
aberration on covert operation I've ever heard of. It simply is not a covert
operation at all. Somebody was just handling a lot of money, and Meese
created the meaningless name for that game, "Iran-Contra", that was just
contrived.

Ratcliffe: What's your sense of the most likely explanation for how things
have gone so awry?

Prouty: It's simple. The Iraqis have fought the Iranians since 1981. And in
that period the Iraqis have released data that this warfare cost them $60
billion. I'm sure the Iranians fought as hard as the Iraqis did. The Iranians
were using U.S. military hardware, because most of their army and navy are
supplied with things made in the United States. When the equipment is made in
the United States -- like engines or parts -- you have to buy them from the
United States; nobody else makes that specific military equipment, at least
not identical. So you have to buy it from the United States.

So, I believe (without too much concern about the exact record, or the
figures) that it must have cost the Iranians about $60 billion to fight the
Iraqis. If it did, it means the Iranians purchased (from somebody) parts made
in the United States that belonged to the U.S military (or the military
suppliers) worth $60 billion. Not a few million. Not a cake and a bible.
Sixty billion dollars. They don't want to talk about it.

So they'd rather talk about the cake and the bible and the Contras. That's
the role Mr. Meese created to divert the people from the $60 billion and talk
about the Contras. When you're talking about the Contras, everything that
happened in Iran is quiet. One was supposed to balance the other.

If you go back and look at the newspapers, the Iranian/Contra problem began
with a little newspaper saying that weapons from the United States had been
exchanged for hostages. That was the problem -- only that. Then, when Mr.
Meese went poking around in the papers in the White House, he says he found a
memo that the money from that exchange was going to the Contras. He made some
funny statements. There's no money from the exchange -- not from that
exchange -- and there was no need of giving money to the Contras. But every
eye and ear of the members of the Congressional hearings turned to the
Contras, and they forgot Iran from that time on. Mr. Meese's gambit
succeeded. As simple as that.

Then we get people who have other interests -- and I make no brief for them;
but people like the Christic Institute -- who amplified on this deal. The
next thing you know, everybody's looking at Nicaragua instead of Teheran.
Well, that covers up the $60 billion deal we played with Iran. There's your
problem.

Clarifying the Role of the National Security Agency (NSA)

Ratcliffe: Regarding a statement in what you quoted: you were saying the
Assistant to the Secretary of Defense for Special Operations was in charge of
reviewing the plans and activities of the NSA -- the NSA being the electronic
eyes and ears of the world for the U.S. Did this mean you would review plans
of the NSA of where they would be listening or what they would be looking
for?

Prouty: Let's keep something in mind here: there is a lot of misunderstanding
about the role of the National Security Agency (NSA). It is eyes and ears --
as a purely technical or mechanical job. It's like the water company. You
have to have a lot of pipes and then the water can come in your house or
somebody else's house. But the pipes have to be there first. If they want to
meter the water coming into your house, they put a meter out there and they
read the meter. Communications is a flow of information something like that.

There are communications channels existent all over the world. It's all
floating around out there in space, all vibrating away in space, perfectly
normal and in accordance with the laws of physics. If you want to listen in,
you use a radio, or you improve radios to all kinds of capabilities by using
computers. And that equipment can monitor any emission that's in the air, or
even in the ground. There are programs that count the vibrations in the
earth. They have things sunk near roads that can count the number of trucks
that pass down that road every day. They can tell you the weight of the truck
by the way it bounces, and so on.

The NSA is so good at all of this emission business, whether it's radio waves
or whatever kind of waves; they can tell you when a power transmission line
is carrying the normal load of electricity or an increased load or when it's
turned off. They can tell you when a nuclear power plant far out in the back
of Western China near the Mongolian border is operating or not operating.

The NSA can do that. These are purely physical things that they do with
instrumentation and enhanced with computers. But they're not covert
activities. There's a difference. They're in the pipes, somebody tells them
what to do and they do it.

The other side of it is, they do so damn much that you can't read it out.
They've got warehouses of data. So they learn to rotate it, and reuse it, and
all that. But they let the computers scan it, and the computers pull stuff
off by signature devices that can read voices, read numbers -- all kinds of
things -- until they get the data they are seeking.

But even then, they need direction. They need to be told: `You heard
so-and-so talk on the phone last week. Find that voice again and let us know
what he says next time he makes a phone call'. And whether he's in Tokyo or
whether he's in Singapore, they'll find that voice again and the computer
will identify it by its code signatures, voice signatures, and they'll put
the message out. That's NSA.

So NSA needs direction. General Erskine was charged with the responsibility
for giving them that direction when required. It makes a lot of sense. But it
is entirely different from the kind of direction you might have working with
CIA, where the CIA is an independent agency and able to do any and all kinds
of activities that human beings can devise which are not the sorts of tasks
you can put under direction. So the CIA activities are much different from
the NSA activities. One is sort of a numbers game, and the other is akin to
dealing with poetry -- you never know what's going to be next. It's an art.
It's a skill. As Mr. Dulles wrote in his own biography, it's The Craft of
Intelligence. It's much different.

Abolishing the OSO
and Moving Special Operations Into the JCS

Things came together in this Office of Special Operations, where the CIA and
the NSA enhanced each other. As such, it was a real fine structure -- that
OSO Office should never have been abolished. It was a very important office;
they made a big mistake. That's when control over our foremost intelligence
agencies began to go downhill, when they abolished OSO. The Defense
Intelligence Agency was established at the same time in early 1961.

Ratcliffe: OSO was run by General Erskine?

Prouty: Yes, Erskine. He had been in that assignment for nine years. I was
his Chief Air Force Officer for Special Operations. He had an Army Officer
and a Navy Officer in similar functions. His Deputy was Lansdale, who was
with CIA. And he had other people from CIA -- a fellow named Frank Hand and
some others. But I was his Chief Air Force Officer and I had headed a similar
Office of Special Operations in the Air Force for the previous five years.

Ratcliffe: Then, when you went in 1962 through 1963 into the Office of the
Joint Chiefs of Staff, your title and position was still dealing with Special
Operations.

Prouty: Yes. I set up that new office to retain that capability of dealing
with the CIA and its covert operations when they closed down OSO. When they
closed down the OSO, other work, like the NSA, was managed through other
offices after that. McNamara dispersed them into different offices. The
Office of Special Operations, the covert support, was put into JCS, and I
worked under the Chairman of the Joint Chiefs of Staff. But it stayed -- the
role was identical, as far as that part was concerned.

Ratcliffe: I thought there was some point when you were involved with doing
for the other branches of the Defense Department what you had done for the
Air Force, in terms of acting as this liaison.

Prouty: That was with JCS. Then I had a senior Army man, a senior Navy man
and I acted as a senior Air Force man so we had all the services. I had a
Marine General, and I worked for a Marine, so we had all the services covered
by being in the JCS. I think that was the proper way to run that. I agreed
very much with General Wheeler and Mr. McNamara when they asked me to go
there, because I felt that really was -- at certain times in my work with the
Air Force, we would collide with the other services. The Agency would, in
effect, bargain with us.

Take the beginning of the Bay of Pigs: the Agency went to the Navy and asked
for initial support in Panama for the Bay of Pigs operation. The Navy
wouldn't do it. So they came to the Air Force, and we did it. We did the
Navy's role really. That's not good -- that kind of colliding on these jobs.
If the Navy had a good reason not to do it, we should have dropped it right
there. In the JCS we'd put it all on the same desk and we wouldn't have that
kind of a mix-up. That was a better way to run this operation.

Ratcliffe: But you also said you felt it was a mistake to have abolished the
office as it stood in the Office of the Secretary of Defense?

Prouty: Yes. In the Office of the Secretary of Defense, where they were
higher, he also had DIA and NSA. And that was very important; they should
have kept those together. And he also had the State Department liaison and
the White House liaison.

Ratcliffe: Alright. You were just commenting about this paper.

Prouty: Yes. It's very good to talk from this government publication. It
describes the roles and the function and the policy of this Office of Special
Operations. If you divide those functions, then some central authority is not
operating to go from one line across the other line.

For example, if we wanted to work with the NSA. NSA knew we had the same
function with CIA, or that we had the same functions with the State
Department, the same responsibilities in the White House. So that we could
bridge all of these organizations together. And from the dominant position of
the Secretary of Defense, we could make sure that NSA and CIA -- and when
necessary, the State Department and the White House -- all knew the same
things. We were not working at cross-purposes. It was a very effective build
up that began again with this NSC 5412 paper back in 1954, and placed under
General Erskine's control and supervision.

Now if that same policy was being performed today -- by what we see again in
the Iran hearings -- I don't think they would have had all this
misunderstanding about who was doing what. Because this was very clear. All
we had to do was, if I ever had a question about whether or not I should do
something that the CIA asked me to do, I had a very simple answer to that
myself. I would go to the Secretary of Defense, who kept a record of his NSC
actions, and I would say: `Mr. Gates, did the NSC approve this operation (the
CIA had just called me to perform)?' He'd look at his record and he'd say,
`Yes. Day before yesterday we approved it. Go ahead.' I wouldn't be in the
quandary that Ollie North and his associates find themselves in.

There was no ambiguity. We knew. If something came up that involved the
support of NSA, NSA could say, `Why are you asking us to do that?' I would
say, `Well, we have had a meeting with the CIA. The Secretary of Defense says
we'll do this.' And then we would do it.

When we needed coordination with the ambassador in India, or the ambassador
in Thailand, we could go to the State Department as the legal representative
of the Secretary of Defense and say: `We have an operation that involves CIA,
that involves NSA, that's going to take place in India, and we just want to
let you know.' Fine. Then we don't have anybody stumbling over each other's
toes. Right now, this question of whether Mr. Bush, when he went to Honduras,
did this or did that -- we didn't get into that kind of problem, because it
had been decided by everybody before we did it. This was a very good system
for this kind of secret operation.

The other way to say it is: the lack of it leads to the problems that we have
seen now. I think that it was a serious mistake for the Secretary of Defense
to abolish the OSO and let these responsibilities go separately on their own,
as they appear to be doing now. In order to create another OSO, President
Reagan brought that responsibility up into the White House under the NSC.
Well, they're not staffed to do any of this. In fact, Poindexter, North,
McFarlane, and Earl are all military officers on duty. They all belong in the
Pentagon. They don't belong over there in the White House. They made a bad
mistake when they failed to see the necessity to keep this team work working
as it was between '54 and '64 and probably for several years after that.

Ratcliffe: Who abolished the OSO -- McNamara?

Prouty: McNamara. It happened almost inadvertently because, again, McNamara
was new. He'd only been there a few months. And General Erskine, who had been
in that job longer than any person had ever been Assistant Secretary -- it
was time for him to retire. He was an elderly man at the time. I think just
because Erskine was leaving, McNamara had not had the experience with the
system -- and I think there was no suitable successor -- Lansdale wasn't the
type of man to be the boss.

Lansdale was a good operator, but not the man to be the boss. First of all,
Lansdale was a CIA agent. They also were setting up DIA at the same time -- I
think a little bit overwhelmed by all these things -- and they didn't think
that losing this whole package was going to be so important. I fought pretty
hard to keep my package together, and I was successful. I was glad to get it
into JCS. But I severely missed the ability to go to the NSA people, or to
the State Department or the White House, to coordinate all this. I still
coordinated with the CIA but, you see, not with the others. So the system
began to break down when it was divided.

Ratcliffe: You were unable to because it wasn't within your scope of contacts
as easily as it had previously been?

Prouty: The Chairman of the Joint Chiefs of Staff did not get these functions
when he got the function of Special Operations. He did not get these other
functions. He only got Special Operations. And personalities have a
tremendous impact. General Lemnitzer, was, as far as I'm concerned, an ideal
Chairman of the Joint Chiefs of Staff, and was not interested in Special
Operations. He thought the military should be military: no fun and games. It
was just that way -- it's his military strength, just the way he'd act.



------------------------------------------------------------------------


1.  Copies of NSAM 263, the "Report of McNamara-Taylor Mission to South
Vietnam", NSAM 273, as well as some of their primary supporting documents,
are included together in Appendix B.

2.  The Secret Team, Appendix I,
http://www.ratical.org/ratville/JFK/ST/STappendix1.html

3.  See Appendix C.

4.  "Military Support of the Clandestine Operations of the United States
Government" written in 1955. See Military Experiences, Part II, page 42.

5.  U.S. Government Organization Manual, 1959-1960, page 143. See page 76.
--[cont]--
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
All My Relations.
Omnia Bona Bonis,
Adieu, Adios, Aloha.
Amen.
Roads End

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