WEDNESDAY. JUNE 18. 1958
HERALD AND NEWS. KLAMATH FALLS. OREGON
PAGE 5 A
CIA
Per
Draws
Year,
$350 Million
But Answers
To No One In . Spending
By JOHN' SCALI
WASHINGTON (API-A money
conscious Congress bestows an
estimated 350 million dollars a
year on an agency so secret only
a handful of the highest officials
know how the money is spent.
. The hush-hush expenditures are
charged off to the high cost of
spying.
And the supersecret outlit is the
Central Intelligence Agency.
The CIA operates a vast Ameri
can espionage network in an
atomic-space age when the merest
scrap of information could mean
the difference between survival
and annihilation.
So rigid is the secrecy that
when brickbats ly. when Congress
grumbles over failures, real or
imaginary, the CIA takes it in
silence. It says simply:
"We never alibi. We never ex
plain." To alibi or explain might reveal
$ source and endanger the under
cover legion of men and women
who gather its information
throughout the world.
The CIA is unique among Ameri
can governmental agencies.
Its estimated budget of 350 mil
lion dollars is little better than a
reasonably good guess. No one
outside the highest official circles
can say for sure.
But, if the estimate is correct
it is 130 million dollars more than
the State Department spends on
its 282 diplomatic outposts around , covers the high spots of the pre-
the world. , fvious 24 tours in the world's
Only a handful of top exeeutives!,r,UDle sPls-
in the government know exactly The report comes to the Presi
how many people work for the dent as a terse 500-word sum-
Hoffa Trial
Nearing End
NEW. YORK (UPD-The retrial
of Teamster President James R
Hoffa and two co-defendants or
wiretap conspiracy charges
reared an end today.
Final witnesses for the defense
were expected to complete their
testimony today. Following sum
mations by both prosecution and
defense, the case could go to the
jury Friday or early next week
Hoffa along with Owen Bren-
nan, president of Detroit Team
ster Local 337 and Bernard Spin
del, a wire-tap specialist, are ac
ruscd 'Of illegally tapping tele
phone lines at the Detroit head
quarters of the Teamsters' Un
ion.
The government has charged
that Hoffa was in Detroit on July
10. 1953 with Brennan to receive
a demonstration of the wire-tap
equipment by Spindel. Hoffa has.
denied the allegation claiming
that he was in Seattle at the
time attending a Teamster convention.
CIA.
The State Department has about
16.000 American employes. It has
been estimated that the CIA has
almost as many. But, again, an
outsider cannot say (o( sure.
'The Soviet Union Is believed to
be spending six times as much as
the CIA on espionage. And up to
45,000 Soviet agents are said to
be directly engaged in spying.)
Comparisons drawn between
CIA and State are particularly
apt. Each is run by a man named
Dulles.
CIA Director Allen Welsh Dul
les, 65. brother of Secretary of
State John Foster Dulles, is a
heavy-set man with a bushy.
white walrus-type mustache. He
tells friends his sole ambition in
government is to stay on as intel
ligence chief until he dies. He's
headed the CIA (or 5'4 of its near
ly 11 years of existence.
Allen Dulles' iob is unique in at
least one respect. He can write a
check for a million dollars with
out telling even the government
accounting office exactly why he
is spending me money.
Most congressmen, who watch
financial matters like a detective
eyeing a pickpocket, have only a
vague idea of how much the CIA
spends and what it spends it for.
i et eacn year the agency s budget
is appropriated promptly.
The exact figure is known to six
senators and representatives who
torm the special subcommittee
that handles CIA finances. They
alone of Congress see the agency's
detailed budget.
Why spend so much on espion
age?
Like everything else, the cost of
apjaug uta anui up ime me auui-
niks and missiles that make it
urgently necessary.
Only a small percentage of CIA
funds goes to pay the salaries of
its thousands of men and women
employes, Stateside and overseas,
A big chunk goes for mainte
nance of its Washington nerve
center housed in 35 buildings
Headquarters is a gray, forbid
ding quadrangle of three-story
buildings on a hilltop in the capi
tal's "Foggy Bottom" area.
Armed guards perch at each
building entrance. Privileged
visitors are escorted through the
buildings to keep appointments,
The essence of CIA intelligence
reports winds up each morning on
President Eisenhower's desk. II
mary. written in short, puncny
sentences. It can be digested by
busy President in about two
minutes.
The streamlined, more spright
ly written report has replaced a
lengthier summary previously giv
en the President. The change was
made shortly after the Soviet Un
ion beat the United States to the
satellite punch.
That's only a coincidence, says
Allen Dulles, whom the Soviets
call "America's master spy."
But administration foes say it's
more than that. They say the ad
ministration did not heed previous
CIA warnings so the agency now
is resorting to simple ABC
language in its reports.
What kind of record has the
CIA compiled in forecasting cold
war events?
A newsman going to the source
invariably runs into the tight sec
recy jiirrounding the heart of the
operation.
But from other sources, includ
ing congressional, it is possible to
estimate the CIA record on nine
important world developments of
the past three years.
Ihe scoreboard:
Soviet satellites Excellent. The
CIA warned for a year that the
Soviet Union was capable of
launching its first Sputnik in 1957.
Missiles Good. But the agency
was conservative in forecasting
the size and thrust of Soviet
rockets.
Anti-Nixon riots in Latin Ameri
caVery good. But the CIA ap
parently failed to foresee the
dangerous disorganization of the
new Venezuelan police force.
Indonesian revolt Excellent.
Soviet nuclear test ban Excel
lent.
Bulganin - Khrushchev reshuffle
Very good. The CIA not only
lorecast this three months earlier
but it fingered Frol Kozlov as a
fast-rising Kremlin newcomer
Hungarian revolt Fair. The
CIA reported signs of mounting
unrest in Hungary but even it was
surprised when the people actual
ly levuitt-u.
Suez war Good. The CIA pre
dicted British and French troops
would invade Egypt a few days
before they did.
Suez Canal seizure Not good.
The CIA failed to estimate fully
Nasser's reaction to the withdraw
al of a proposed U. S. loan for
construction of the Aswan dam
.t-i ,Vuf. t- t3
Mid-East Troublemakers Get Notice US Ready To Use Arms
WASIMfc'GTON iVPIi Mideast
troublemakers were on notice to
day the United Stales is prepare
to take swift military aclion in
Lebanon if the I'nited Nations is
unable to preve the indepen
dence of that revolt-torn country.
HEADS supersecret outfit
Allen Welsh Dulles, 65, di
rector of the Central Intel
ligence Agency, the gov
ernment's supersecret out
fit, is shown at his desk in
his Washington office. A
money - conscious Congress
bestows an estimated 350
million dollars a year on
the CIA yet only a handful
of the highest officials
know how the money is
spent. Allen Dulles is the
brother of Secretary of
State John Foster Dulles.
(AP Wirephoto)
Atom Workers
Under Watch
OAK JUDGE, Tenn. (UPI)
live of eight atomic plant workers
exposed In excessive radiation arc
being held in a hospital for ob
servation.
Plant and Atomic Energy Com
mission officials said they are
launching an investigation into
the incident which was the first
of its kind in the plant's 14
years of operation.
Officials said the accident oc
curred when a workman in the
uranium recovery room of the
huge plant dumped a con
tainer of enriched uranium into a
larger drum.
A nuclear reaction tnnk place
which raised the radiation level
in the plant.
Officials would not release
names of those exposed, but said
thev arc receiving the best of
medical attention hy leading spe
cialists in the field of radiation
medicine.
Labor litf
Backers Hope
For Victory
WASHINGTON. UPH Back
ers' of the Senate's "moderate"
labor reform bill hoped today its
overwhelming 88-1 victory in the
Senate would spur a reluctant
House to act on the measure this
year.
The bill, aimed at ending labor-
management abuses turned up by
the Senate Backets Committee,
sent to the House Tuesday
night after five days of debate
with the blessing, of Democratic
leaders, the administration and
Senate GOP leader William F.
Knowland who had sought a stiff-
er measure.
House Democratic leaders had
no immediate comment. They
were expected to confer soon
with Rep. Graham Harden (D
N.C.), chairman of the House La
bor Committee who has heen re
luctant to act on any labor legis
lation in an election year.
Barden told United Press Inter
national he had not read the
Senate bill and "could guess the
weather wilh as much accuracy"
as the outlook for the measure
in his committee.
Rep. Ralph W. Gwinn iR-N.Y.)
senior GOP member of the com
mittee and advocate of a much
tougher union-control bill, predict
ed the committee will not act on
broad labor reform legislation.
"Not that I wouldn't like to see
a good, honest labor bill hut we
just don't have the votes," he
said.
American officials emphasized
the hope that presence of U.N.
ohservers will help restore order
and prevent the infiltration of
leaders and arms for the rebels
Irom neighboring Svria. a part of
the VnMed Arab Republic lUAR).
Bui they made it clear the
I'nited Slates, with its powerful
Sixth rleet cruising Ihe east
SI1AKELP
MANILA API Informed
sources in the Foreign Office say
Hrig. Gen. Carlos P. Romulo soon
I give up his post as Philippine
ambassador in Wasnington to con
centrate on representing his
country at the United Nations.
He reportedly will be replaced
Washington by former Sen
Francisco Delgado. once the Phil
ippine commonwealth commis
sioner to Washington and U.S.
Philippine war damage commis
sioner.
The changes are said to be part
ot a major shakeup in the Philip
pine diplomatic service.
ern Mediterranean, wilt not
idly by and watch the tides of
chaos engulf Ihe government of
pro-Western Lebanese President
Camille Chamoun.
Disclosure of the lirm Ameri
can position came after Secretary
of State John Foster Dulles told
news conference Tuesday there
were possible contingencies in
which U.S. Marines would be sent
into Lebanon apart from any
U.N. action.
Dulles said he was "aware of
Ihe fact" that the Sixth Fleet
has elements close to Lebanon
with Marines aboard who could
"if need be, respond to appropri
ate invitations.
Later in the day Dulles went
to the Pentagon where he con
ferred with Defense Secretary
Neil H. McElroy.
Authoritative sources, "inter
preting Dulles' remarks, said he
intended to serve notice on UAR
President Gamal Abdel Nasser
and any others aiding the Leban
ese rebels that the United States
sit i would act to preserve the integ
rity of Lebanon if it became ap
parent U.N. efforts were doomed
to failure.
Officials said any American ac
tion would have to be based on a
direct appeal from Chamoun, ac
companied by evidence the U.N.
could not act fast enough to sal
vage the situation.
Given these conditions, the
contingencies" under which the
United States would act would in
clude 1 1 1 the necessity to rescue
imperiled American nationals and-
i2i the need to prevent final
domination of Lebanon hy leftists.
CAVE-IN
LAS VEGAS, Nev. (AP) A tun-
nel cave-in at the atomic test site
north of Las Vegas killed one
man and injured another.
A crew was installing air condi
tioning vents when the ceiling col
lapsed 500 feet from the tunnel
entrance yesterday.
Dennis B. Goins, 4fi, was killed
by a falling boulder. Raymond
Roberts, 46, . suffered a broken
leg.
Six other workers scrambled to
safety.
George Washington presented a
fire engine to Alexandria, Virginia.
in 1775. He bought the engine in
pniladelphia for $400.
ft
Mrs. Eleanor Roosevelt
ACCLAIMS NEW HEARING MIRACLE
FOR THE HARD OF HEARING!
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SEWING QUIZ
CONTEST
WALTER HEITKEMPER
Manaqer of our Hearing Aid Department
will be in Klamath Falls for personal dem
onstration Friday June 20 Saturday June 21
3 CHANCES TO WIN
if you ENTER TODAY!
3 contests in all a n.w
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Rain Forecast
Over Nation
By THE ASSOCIATED PRESS
A fashion note from the weath
er man: keep your umbrellas and
raincoats handy today.
Wet weather ranRinR from
booming thunderstorms to pre-
tummer showers was forecast
for most of the nation.
An umbrella might have been
handy, but hardly practical in
iieh a soot as Bandera County.
Tex. yesterday. The 24-hour rainfall
there was measured at 20 inches.
Utopia, a small town on the Sa-
binal River, got a dig storm mat
dumped 11 inches on the commu
nity and washed out telephone
lines.
Storm-wary Texans got so edgy
near Dallas that they reported
clearly seeing a tornado funnel.
But the Weather Bureau said it
was a miraee caused by a cloud
fragment dangling in front of the
letting sun.
Forecasters said two major
areas expected to be free of wet
weather today are sections of the
Pacific Coast and tne Atlantic
Coastal strip.
Greek Movie
House Burned
NICOSIA. Cyprus (AP Anoth
r nronir nrnnertv was burned to
dav and the British government
again blamed Turkish Cypriols op
posing union of the island colony
The blaze in the Greek-owned
Pallas movie house was tne tourm
fire attack on Greek holdings in
v. in 9i hniirc. Damage to
the movie house was estimated al
1,000 pounds i$2.800i.
So far. however, there was no
.mti,n nf ihe Turkish riot at
tacks last week in which 15 Greeks
and 2 Turks were killed.
Rr;t in vocterHav oostooned an
nnuncement of her new plan for
the future of Cyprus until Thurs
day at the request of the North
A,inHtin rnnnpil
n-;m. tinictrr Macmillan told
the House of Commons in London
that the NATO group naa requeu
ed the delay "to see what help
thev can give in the work oi con
Ciliation."
O People Read
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