-Caveat Lector-

Dave Hartley
http://www.Asheville-Computer.com/dave

Domestic Surveillance:
The History of Operation CHAOS
by Verne Lyon
from Covert Action Information Bulletin, Summer 1990
http://www.magnet.ch/serendipity/cia/lyon.html

Verne Lyon is a former CIA undercover operative
who is now a director of the Des Moines Hispanic Ministry.
For over fifteen years, the CIA, with assistance from numerous government
agencies, conducted a massive illegal domestic covert operation called
Operation CHAOS. It was one of the largest and most pervasive domestic
surveillance programs in the history of this country. Throughout the
duration of CHAOS, the CIA spied on thousands of U.S. citizens. The CIA went
to great lengths to conceal this operation from the public while every
president from Eisenhower to Nixon exploited CHAOS for his own political
ends.

One can trace the beginnings of Operation CHAOS to 1959 when Eisenhower used
the CIA to "sound out" the exiles who were fleeing Cuba after the triumph of
Fidel Castro's revolution. Most were wealthy educated professionals looking
for a sympathetic ear in the United States. The CIA sought contacts in the
exile community and began to recruit many of them for future use against
Castro. This U.S.-based recruiting operation was arguably illegal, although
Eisenhower forced FBI Director J. Edgar Hoover to accept it as a legitimate
CIA function. Congress and the public showed no interest in who was
recruiting whom.

The CIA's Office of Security was monitoring other groups at this time and
had recruited agents within different emigré organizations. (1) The CIA
considered this a normal extension of its authorized infiltration of
dissident groups abroad even though the activity was taking place within the
U.S. Increased use of the CIA's contacts and agents among the Cuban exiles
became commonplace until mass, open recruitment of mercenaries for what was
to be the ill-fated Bay of Pigs invasion was no longer a secret in southern
Florida. It was no secret to Fidel Castro either, as we later found out.

This activity led the CIA to establish proprietary companies, fronts, and
covers for its domestic operations. So widespread did they become that
President Johnson allowed the then CIA Director, John McCone, to create in
1964 a new super-secret branch called the Domestic Operations Division
(DOD), the very title of which mocked the explicit intent of Congress to
prohibit CIA operations inside the U.S. (2) This disdain for Congress
permeated the upper echelons of the CIA. Congress could not hinder or
regulate something it did not know about, and neither the President nor the
Director of the CIA was about to tell them. Neither was J. Edgar Hoover,
even though he was generally aware that the CIA was moving in on what was
supposed to be exclusive FBI turf. (3)

In the classified document creating the DOD, the scope of its activities was
to "exercise centralized responsibility for the direction, support, and
coordination of clandestine operational activities within the United
States...." One of those was burglarizing foreign diplomatic sites at the
request of the National Security Agency (NSA). The CIA also expanded the
role of its "quasi-legal" Domestic Contact Service (DCS), an operation
designed to brief and debrief selected American citizens who had traveled
abroad in sensitive areas of intelligence interest. Because the interviews
took place in airports between the aircraft and customs and immigration
control, the operations were not technically considered domestic. the DCS
also helped with travel control by monitoring the arrivals and departures of
U.S. nationals and foreigners. In addition, the CIA reached out to former
agents, officers, contacts, and friends to help it run its many fronts,
covers, and phony corporations. This "old boy network" provided the CIA with
trusted people to carry out its illegal domestic activities.


The Justification
With the DCS, the DOD, the old boy network, and the CIA Office of Security
operating without congressional oversight or public knowledge, all that was
needed to bring it together was a perceived threat to the national security
and a presidential directive unleashing the dogs. That happened in 1965 when
President Johnson instructed McCone to provide an independent analysis of
the growing problem of student protest against the war in Vietnam. Prior to
this, Johnson had to rely on information provided by the FBI, intelligence
that he perceived to be slanted by Hoover's personal views, which often
ignored the facts. Because Hoover insisted that international communism was
manipulating student protest, Johnson ordered the CIA to confirm or deny his
allegations. All the pieces now came together.
To achieve the intelligence being asked for by the President, the CIA's
Office of Security, the Counter-Intelligence division, and the newly created
DOD turned to the old boy network for help. Many were old Office of
Strategic Services people who had achieved positions of prominence in the
business, labor, banking, and academic communities. In the academic arena,
the CIA sought their own set of "eyes and ears" on many major college and
university campuses. The FBI was already actively collecting domestic
intelligence in the same academic settings. (4) The difference between the
intelligence being gathered was like night and day. The FBI Special Agents
and their informers were looking for information that would prove Hoover 's
theory. The CIA wanted to be more objective.

In April 1965, Johnson appointed Vice-Admiral William Raborn CIA Director
(DCI, or Director of Central Intelligence) and Richard Helms Deputy
Director. Since Raborn's days at the helm of be CIA seemed numbered from the
outset, he never really became involved in the nuts and bolts of domestic
operations; that was left to Helms, a career intelligence officer who had
come up through the ranks (he had been Deputy Director for Plans (DDP) since
1962 and Deputy DCI from 1965-66) and who could be trusted. Helms became DCI
in June 1966. As Deputy Director, he had allowed the CIA slowly to expand
its domestic intelligence operations and understood his orders from
President Johnson were to collect intelligence on college and university
campuses with no governing guidelines other than "don't get caught." Helms
now had a free hand to implement Johnson's orders and, by August 1967, the
illegal collection of domestic intelligence had become so large and
widespread that he was forced to create a Special Operations Group (SOG).
The SOG was imbedded in the DDP's counterintelligence division and provided,
data on the U.S. peace movement to the Office of Current Intelligence on a
regular basis. (5)

As campus anti-war protest activity spread across the nation, the CIA
reacted by implementing two new domestic operations. The first, Project
RESISTANCE, was designed to provide security to CIA recruiters on college
campuses. Under this program, the CIA sought active cooperation from college
administrators, campus security, and local police to help identify anti-war
activists, political dissidents, and "radicals." Eventually information was
provided to all government recruiters on college campuses (6) and directly
to the super-secret DOD on thousands of students and dozens of groups. The
CIA's Office of Security also created Project MERRIMAC, to provide warnings
about demonstrations being carried out against CIA facilities or personnel
in the Washington area. (7)

Under both Projects, the CIA infiltrated agents into domestic groups of all
types and activities. It used its contacts with local police departments and
their intelligence units to pick up its "police skills" and began in earnest
to pull off burglaries, illegal entries, use of explosives, criminal
frame-ups, shared interrogations, and disinformation. CIA teams purchased
sophisticated equipment for many starved police departments and in return
got to see arrest records, suspect lists, and intelligence reports. Many
large police departments, in conjunction with the CIA, carried out illegal,
warrantless searches of private properties, to provide intelligence for a
report requested by President Johnson and later entitled "Restless Youth."
(8)

SOG was being directed by Richard Ober, a CIA person with an established
record of domestic intelligence operations in academia. (9) When Ramparts
magazine disclosed the relationship between the National Student Association
and the CIA in early 1967, Ober was assigned to investigate the magazine's
staff members, their friends, and possible connections with foreign
intelligence agencies. (10)

In July 1968, Helms decided to consolidate all CIA domestic intelligence
operations under one program and title. The new operation was called CHAOS
and Ober was in charge. (11) Its activities greatly expanded from then on at
the urging not only of President Johnson, but also his main advisers Dean
Rusk and Walt Rostow. Both men were convinced that Hoover was right and
foreign intelligence agencies were involved in anti-war protests in the U.S.
Johnson was not convinced and wanted the CIA's intelligence in order to
compare it with that provided by the FBI.


The Nixon Administration
After Richard Nixon took office in January 1969, Helms continued operations
with the assurance that nothing would ever be leaked to the public. But he
began to face pressure from two opposing factions within the CIA community.
One wanted to expand domestic operations even more, while the other reminded
him that Operation CHAOS and similar activities were well "over the line" of
illegality and outside the CIA's charter. To put a damper on this internal
dissent, Helms ordered Ober to stop discussing these activities with his
direct boss in counterintelligence, James Jesus Angleton. The internal
protests continued, however, as White House aide and staunch anti-Communist
Tom Charles Huston, pressed for ever increasing domestic operations.

Huston was eager to expand Operation CHAOS to include overseas agents and to
"share" intelligence with the FBI's intelligence division, directed by
William Sullivan. There were more than 50 CHAOS agents now, many receiving
several weeks of assignment and training positions to establish their covers
as radicals. (12) Once they returned to the U.S. and enrolled in colleges
and universities, they had the proper "credentials."

In June 1970 Nixon met with Hoover, Helms, NSA Director Admiral Noel Gaylor,
and Defense Intelligence Agency (DIA) representative Lt. Gen. Donald V.
Bennett and told them he wanted a coordinated and concentrated effort
against domestic dissenters. To do that, he was creating the Interagency
Committee on Intelligence (ICI), chaired by Hoover. The first ICI report, in
late June, recommended new efforts in "black bag operations," wiretapping,
and a mail-opening program. In late July 1970, Huston told the members of
the ICI that their recommendations had been accepted by the White House.
(13)

John Dean replaced Tom Huston as White House aide in charge of domestic
intelligence, and at his urging, a Justice Department group, the
Intelligence Evaluation Committee, was established to study domestic groups,
over Hoover's protest. Deteriorating relations between the FBI and the other
intelligence agencies, especially the CIA, caused Hoover to fire William
Sullivan. At that time, Sullivan was the liaison officer between the FBI and
the other intelligence agencies and he strongly favored the expansion of
domestic operations.


Second Thoughts
Even Helms began to have second thoughts about how large CHAOS had grown,
but Nixon made it clear to him that the CIA was a presidential tool he
wanted at his disposal. Helms got the message, yet he also understood the
growing uneasiness in other government circles. In 1972, the CIA's Inspector
General wrote a report that expressed concern about Operation CHAOS in the
following way: "... we also encountered general concern over what appeared
to be a monitoring of the political views and activities of Americans not
known to be or suspected of being involved in espionage ... Stations were
asked to report on the whereabouts and activities of prominent persons ...
whose comings and goings were not only in the public domain, but for whom
allegations of subversion seemed sufficiently nebulous to raise renewed
doubts as to the nature and legitimacy of the CHAOS program." (14)
Helms was being squeezed by White House demands to expand Operation CHAOS
and the fear that the whole question of domestic operations was going to
become public knowledge, as Hoover feared. Helms found himself constantly
shoring up one lie with another and then another. He found himself deceiving
Congress and lying to the public as well as CIA employees. In March 1971, a
group of young CIA executives known as the Management Advisory Group (MAG)
protested Operation CHAOS and similar domestic operations by issuing a
statement saying, "MAG opposes any Agency activity which could be construed
as targeted against any person who enjoys the protection of the U.S.
Constitution ... whether or not he resides in the United States." (15)

Helms of course denied the CIA was involved in domestic operations, or using
basic American institutions such as the Peace Corps, the business community,
or the media as covers for CIA operations. Just a few years later, Oswald
Johnston of the Washing ton Star reported that over 35 American journalists,
some full-time, some free-lance, and some major media correspondents were on
the CIA payroll. And in 1974 the CIA admitted that over two hundred CIA
agents were operating overseas posing as businessmen. (16)


The Collapse of the House of Cards
The web of deception, misinformation, lies, and illegal domestic activities
began to unravel with speed in the summer of 1972 when Howard Osborn, then
Chief of Security for the CIA, informed Helms that two former CIA officers,
E. Howard Hunt and James McCord, were involved in a burglary at the
Watergate complex in Washington, D.C. The house of cards was about to come
crashing down and Helms now wanted to salvage what he could and distance
himself from not only Watergate but also the domestic operations. He
appointed CIA Executive Director William Colby to handle any investigations
into the Agency's domestic operations and began to prepare for the
inevitable.
Helms was called to Camp David by President Nixon and subsequently fired.
His replacement was James Schlesinger (who would last but a few months).
Schlesinger would be replaced in July 1973 by Colby, and Helms would become
U.S. Ambassador to Iran to get him as far away as possible. In an effort at
damage control, Colby decided that Operation CHAOS and Project RESISTANCE
should be terminated.

In 1975 the CIA underwent public investigation and scrutiny by both the
Church and Rockefeller committees. These investigations revealed
considerable evidence showing that the CIA had carried out its activities
with a tremendous disregard for the law, both in the U.S. and abroad.

During the life of Operation CHAOS, the CIA had compiled personality files
on over 13,000 individuals including more than 7,000 U.S. citizens as well
as files on over 1,000 domestic groups. (17)

The CIA had shared information on more than 300,000 persons with different
law enforcement agencies including the DIA and FBI. It had spied on,
burglarized, intimidated, misinformed, lied to, deceived, and carried out
criminal acts against thousands of citizens of the United States. It had
placed itself above the law, above the Constitution, and in contempt of
international diplomacy and the United States Congress. It had violated its
charter and had contributed either directly or indirectly to the resignation
of a President of the United States. It had tainted itself beyond hope.

Of all this, the CIA's blatant contempt for the rights of individuals was
the worst. This record of deceit and illegality, implored Congress as well
as the President to take extreme measures to control the Agency's
activities. However, except for a few cosmetic changes made for public
consumption such as the Congressional intelligence oversight committee
nothing has been done to control the CIA. In fact, subsequent
administrations have chosen to use the CIA for domestic operations as well.
These renewed domestic operations began with Gerald Ford, were briefly
limited by Jimmy Carter, and then extended dramatically by Ronald Reagan.

Any hope of curbing these illegal activities is scant. Recently, George Bush
and current DCI William Webster announced a need to again target political
enemies of the U.S. for assassination. It is ironic that Webster, a former
Federal Judge, would chose to ignore the limits and constraints placed on
the government by the Constitution. During his tenure as Director of the
FBI, the bureau was once again involved in the infiltration of groups
practicing their constitutional right to dissent against U.S. government
policies. Once again, the FBI compiled thousands of files on individuals
protesting Reagan's war against Nicaragua and support for the genocidal
Salvadoran military. Now, Webster is in a position of perhaps even greater
power and, without doubt, would have no qualms about abusing it.


Conclusion
Given the power granted to the office of the presidency and the
unaccountability of the intelligence agencies, widespread illegal domestic
operations are certain. We as a people should remember history and not
repeat it. It is therefore essential that the CIA be reorganized and
stripped of its covert operations capability. Effective congressional
oversight is also an important condition for ending the misuse of the
intelligence apparatus that has plagued every U.S. administration since the
formation of the CIA. A great deal is at risk our personal freedoms as well
as the viability of this society. The CIA must be put in its place. Should
we demand or allow anything less, we will remain vulnerable to these abuses
and face the risk of decaying into a lawless state destined to
self-destruction.

----------------------------------------------------------------------------
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References
1. Robert L. Bomsage and John Marks, eds., The CIA File (New York: Grossman,
1976), p. 97.
2. Morton H. Halperin, et al., eds., The Lawless State (New York: Penguin,
1976), p. 138.
3. Ibid.
4. Organizing Notes, April 1982 (Vol 6, No. 3), p. 6.
5. Thomas Powers, The Man Who Kept the Secrets (New York: Knopf, 1979), p.
246.
6. Op. cit., n. 2, p. 145
7. Ibid., p. 146.
8. Op. cit., p. 245.
9. Op. cit., n. 2, pp. 148-49.
10. Ibid., p. 148.
11. Ibid.
12. Op. cit., n. 2, p. 150.
13. Op. cit., n. 5, p. 248.
14. Op. cit., n. 2, p. 153.
15. Center for National Security Studies report, Operation Chaos
(Washington, D.C.: 197), p. 11.
16. Op. cit., n. I, pp. 101-02, 106.
17. Op. cit., n. 2, p. 153.

Campus Surveillance The CIA Serendipity Home Page
http://www.magnet.ch/serendipity/cia/lyon.html

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