New Reagan worry

Press, 4 December 1981, Page 6

New Reagan worry

NZPA-Reuter Washington A United States senate committee has cleared the Central Intelligence Agency director, William Casey, of improper business dealings. But its tepid endorsement of Mr Casey would prove a further embarrassment to President Reagan, who is already under attack for not dismissing his National Security Adviser, Richard Allen. Mr Allen is taking leave of absence while the Justice Department investigates gifts which he received from Japanese contacts early this year. The select intelligence committee, reporting on a four-month investigation of Mr Casey’s business affairs, both as a private citizen and since taking the C.I.A. job, concluded that he was not unfit to continue in the post.

But although Senator Walter Huddleston of Kentucky endorsed the report he later issued a statement saying that Mr Reagan should dismiss Mr Casey. Another Democratic senator, Joseph Biden of Delaware, did not sign the report and said he had lost confidence in the C.I.A. director. Senator Huddleston said the committee's report on Mr Casey found nothing of an illegal nature, but he added: “A pattern of activity emerges that should give the President some concern as to whether Mr Casey should remain as director of the C.1.A.” Mr Casey said in a statement issued through the C.1.A.: “I am pleased the Senate intelligence committee, after an exhaustive investigation, has reported

nothing which reflects on the integrity, the business practices and the ethical standards in which I have always taken pride. The committee’s report criticised Mr Casey for omitting a large amount of information about his previous commercial dealings and present investments when he submitted documents to the Senate before he was confirmed in the C.I.A. post in January. The report said he omitted at least nine investments, valued at more than $U5250,000 ($NZ299,805) as well as personal debts of nearly SUSSOO,OOO ($NZ600.300), four civil lawsuits that he had been involved with in the last five years, and more than 70 clients he had represented in private law practice in the last five years.