A-8--INDEPENDENT (AM) PRESS-TELEGRAM (PM) uw, n^cn, cÂ»m.. woo., ^cft M. m By DAVID MARTIN WASHINGTON (AP)Tho late columnist Drew Pearson gave the Central Intelligence Agency a secret report cf a 1964 inter view with Soviet Premier Nikita Khrushchev about the assassination of President Kennedy. The report, which said Khrushchev "was completely convinced that the true story of the Kennedy a s s a s s i n a t i o n h a s n o t come out," was forwarded immediately to t h e W a r - ren C o m m i s s i o n in three-page memo which has now been released by the CIA. The report apparently did not figure significantly in the commission's invest i g a t i o n , s i n c e K h r u s h - c h e v ' s remarks merely echoed what already had appeared in the Kremlin- controlled Soviet press. H O W E V E R , the i n c i dent represents one of the few, known examples of the manner in which the CIA has used journalists for intelligence-gathering p u r p o s e s -- a practice w h i c h director G e o r g e B u s h recently b a n n e d . There is no indication that Pearson was either pressured or paid for his information. In accordance with lhc CIA's policy of not revealing intelligence sources, Pearson's name lias been deleted from the declassi- --REPORTS-5:45 P.M. 1280 Pearson role as :oi IN L P ) Drew ontral a sc- inter- emicr about Prcsi- said com- at the nnedy not arded Warin a which cd by re nil y cantly invcs- r u s h - tterely y had emlin- ss. i n c i of the es of :h the nalists icring acticc Gorge n n e d . n that prcs- infor- th lhc cveal- urces, been class i- in \u r t i 1. \r \ M .m. trv' ' H JF titact revealed ficd version of the May 27, 1964, mcmo sent to the Warren Commission. However, a list of commission documents on file at the National Archives includes a memo of the same dale e n t i t l e d "Discussion Bet w e e n Chairman Khrushchev a n d M r . D r e w Pearson re Lee Harvey Oswald." Pearson's i d e n t i t y as the source of the report was also confirmed hy a former intelligence officer who said the lale columnist had given the report lo the CIA station chief in Cairo. The interview with Khrushchev t o o k place there during ceremonies marking the opening of the f i r s t stage of the Aswam Dam. THE MEMO said that K h r u s h c h e v b e l i e v e d "there was some kind of A m e r i c a n conspiracy behind the assassination of President Kennedy and the murder of Oswald." Pearson's efforts to convince Khrushchev that Oswald had acted alone met "with a tolerant smile," according to the memo. On May 28, one day after Pearson's report had been sent to the Warren Commission, a column he had written from Cairo app e a r e d in U.S. news- p a p e r s , s a y i n g t h a t K h r u s h c h e v "expressed interest in the W a r r e n Commission's probe into who was rcsponsiWc for the assassination." Records kept by Jack Anderson, who took over Pearson's syndicated col- u m n a f t e r P e a r s o n ' s death, show that a subsequent June 15 column also mentioned Khrushchev's feelings about the assassination. TYLER ABEI,L, a Washington attorney who h a s e d i t e d P e a r s o n ' s IX LINOLEUM d i a r i e s f o r publication, s a i d he could f i n d no record of a report to the CIA. H o w e v e r , A b e l l added that Pearson had sent a telegram to President Lyndon B. Johnson describing Khrushchev's warning t h a t continued U.S. r e c o n n a i s s a n c e flights o v e r Cuba could touch off an international incident. The Khrushchev report marks the second instance (o come lo light in which Pearson played a secret role in the investigation of t h e K e n n e d y assassination. In 1967, he relayed to t h e n Chief Justice Earl Warren information about CIA assassination p l o t s against C u b a n premier Fidel Castro, prompting s p e c u l a t i o n t h a t the Kennedy slaying m i g h t have been ordered by Castro in retaliation. ALTHOUGH the commission had not been lotd a b o u t t h e C I A plots against Castro, it did have evidence of t h r e a t s by Castro against the lives of U.S. leaders. On Monday it was learned thet the decision not to include this evidence, which consisted of a news slory quoting C a s t r o as saying "U.S. leaders would be in danger if they helped in any attempt lo do away with leaders of Cuba," in the commission's f i n a l report had touched off a sharp dispute among staff members. "We got into a serious hassle w i t h it," former staff member Wesley J. Liebelcr said of the story which a recent CIA mcmo cilcd as a promising lead lhat "must be considered of greal significance" in examining the possibility thai a foreign conspiracy was behind the Kennedy assassination. According to Licbclcr, the storv WTS not included in the final report because [here was no evidence that Oswald had read it. CM, KGB agent swap negotiated Kjiighl News Service NEW YORK-Stale Department o f f i c i a l s and Russian secret police are meeting secretly in East Berlin to negotiate the exchange of a self-admitted KGB operative for a "highly placed" CIA agent now in Soviet custody, the New York News learned Tuesday. The swap could take place as early as noxl week, according to the KGB agent's attorney. Focal p o i n t of t h e "delicate" negotiations is Sarkis 0. Paskalian, a 36-year-old Armenian- born diamond c u t t e r who pleaded guilty last September in Brooklyn F e d e r a l C o u r t lo charges of spying for Moscow. American officials reportedly w e r e trying to s w a p Paska- lian for an unidentified undercover agent who had infiltrated the upper levels of the Soviet bureaucracy. THERE WAS no indi- c a t i o n j u s t h o w t h e agent's cover was blown or how long he has been held by the Russians. It was learned, however, thai lhc C I A agent's wife was the catalyst in Ihe case. She hired a Washington, D.C., law firm after the State De- parlmcnt and CIA refused lo discuss Her husband's whereabouts. Apparently the wife's lawyers, from the (inn of Covington and Burling, verified thai the agent had indeed been arrested, then shopped a r o u n d f o r a l i k e l y candidate for a swap. They hit upon Paska- lian, a M a n h a t t a n d i a - m o n d cutler arrested last June by Ihe FBI on charges of having trans- m i t t e d n t o p - s e c r e t s t u d v of the \ o r t h A t l a n t i c Treaty O r g a n - ization to Soviet agents. Braniff fined for juggling books to hide funds misuse Braniff from Including the fine, the unlawful political contributions or the payments to travel agents as part of its expenses when asking the CAB for future rate increases. The board said it look this action to keep Braniff from passing on those, costs to consumers in the form of higher fares. Kilchon Floor 12MREDONDO AVE., LONG BEACH FREE ADVICE MOH. 1 Â·Â»:Â», WMkflan Â»-t. Sit. till i p.m. 11,1, LK. NÂ« r WASHINGTON (AP) The C i v i l Aeronautics Board Tuesday fined Braniff International Airways a record $300,000 for juggling its books to hide an illegal contribution made to the, re-election campaign of former President Nixon in 1972 and to hide rebates the airline paid to travel a g e n t s in South America. The board a l s o an- n o u n c e d t h a t B r a n i f f , which consented to the r e c o r d f i n e , also h a d agreed to the CAB's deci- s i o n to seek a federal c o u r t i n j u n c t i o n t h a t would prohibit the airline and its employes from taking similar actions in the future. B R A N I F F acknowledged d u r i n g the board's investigation that it sold airline tickets with a face value of more than $1 million to generate "off the books" cash that could be used for rebates and for paying excessive commissions to travel agents. Braniff is the second airline to be fined by the CAB for such activities. American A i r l i n e s was fined $150,000 last year for using similar accounting practices to hide contributions made to Nixon and to other political candidates. The CAB investigation began after Braniff admitted in federal court that it had made the contribution to Nixon's campaign. The airline and its chief executive officer, Harding Lawrence, we^e fined $6,000 by the court after admitting they used corporate funds for the gift. A Ralph Nader group, the Aviation Consumer Act i o n Project, asked the CAB shortly a f t e r the federal court decision to investigate B r a n i f f ' s accounting procedures. The b o a r d ' s investiga- don resulted in its bureau of enforcement's charging Branilf w i t h unlawfully distributing at least 3,628 airline tickets for the purpose of generating "an off- the-record source of funds for use...at least in part for unlawful purposes." It' alleged that Branilf used the funds generated hy these sales to furnish free air transportation in violation of the Federal Aviation Act and to give e x t r a considerations to travel agents, tour groups and promoters. SHORTLY a f t e r t h e charges were brought by the b o a r d , B r a n i f f acknowledged s e l l i n g the special tickets and said the funds basically went to pay rebates and excessive commissions to t r a v e l agents throughout L a t i n America. Braniff officials named in the CAB action settled Tuesday were Lawrence; C. Edward Acker, formerly president of B r a n i f f until he resigned in October of 1975; Robert H. Burck, vice president of p u b l i c a f f a i r s ; J o h n Casey, executive vice president of s a l e s and o p e r a t i o n ; C h a r l e s S. South, senior v i c e president for Latin America operations; ' a n d Camilo Sabrega, r e g i o n a l vice president f o r P a n a m a operations. . _The CAB order prohibits INSURANCE-CAREER? CAREER OPEN HOUSE SET For men and women considering insurance as a new career James R. Foster, Vice-President and Los Angeles Regional Manager of Farmers Insurance Group announces a special "Career Open House" Thursday, March 25, 1974 at 7:30 P.M. in the Matador Room, of the Rochelles Convention Center al 3333 Lakewood Blvd. In Long Beach. In addition to a dramatized presentation, special speakers will include R.E. Lee, Director of Agencies, who will explain the unlimited earning potential with the Farmers Insurance Group. Guests will receive a Iree Booklet, "A NEW CAREER" and lull information on how to secure an Insurance license. They will have the opportunity to meet management and some of the firm's top salespeople and ask questions regarding an Insurance Career. The event Is open to the public and there is no admission lee. GRAHAM WELDING SUPPLY CO, I 1 "GRAND PRIX SPECIAL" I* Oxy-Acetylene Welding Cutting |1 Outfits (S.C.) for as low as ij Other outfits $90.00 (Reg. $130.) I. Comparable reductions on additional brands of outfits. Oxygen acetylene cylinders now available for 1 year or 2 year leasing with option to purchase. 2100 E. WILLOW ST. LONG BEACH, CA. (Near Corner Willow Cherry) Open Dally 8-5, Sat. 9-1 Report urges no action on FBI aides in King bugging PSA flies to San Jose twice a day (from Long Beach). By JOSEPH VOLZ Knight News Service W A S H I N G T O N - A Justice Department report is expected to recommend against prosecuting t h e former high FBI officials who issued orders to harass the lale Dr. Martin Lu( h e r K i n g , I h e Knight N e w s S e r v i c e learned Tuesday. At the same lime, lhc report, which is now in draft form, will contend that the FBI conducted a thorough investigation into the April -I, 1968, assassination of King nnd that no further probe is needed. Sources al the Justice De- parlmenl say Ilia I a review by the Civil Rights Division, ordered by Atly. Gen. Edward H. Levi last November, has found no indication l h a t a n y o n e other t h a n James Earl Ray, convicted killer of King, was involved in the King slaying. JUSTICK Department lawyers were faced willi n arnnn IN LONG BEACH SAVINGS ARE NOW FEDERALLY INSURED UP TO $40,000 NEW CERTIFICATE RATES 6V2% 7-3/4% ONE YEAR SIX Y E A R 1 ,000 minimum 1,000 minimum And Other Savings Plans l our o f f i c e for dot.iils m EARNINGS PAID 4 TIMES A YEAR -- Funds received by the 10th of any monlh earn from Ihe first of lhc -- month. Funds received rffter the iotti earn from Ihe diite of receipt. TM Funds earn from day of deposit lo day of withdrawal on passbook ~~ accounts. --Â· FREE Safe Deposit Sox, Travelers' Checks, Notary Public Service ~ Money Orders and Note Collection Service with $1000 Minimum Balance I FIRST FEDERAL SAVINGS T"^ OF lONG 6 I A C H El NOT THE I A R O E * T -- JUST ONE OF THt BEST FIRSf and PINE US E OCEAN AVE 1725 XIMENO AVE d i f f e r e n t problem w h e n examining the F B I bugging, wiretapping and harassment of King. Sources said thai the statute of limitations, five years on ' most crimes, had run out long ago on any FBI offenses related to the King case. The report will go to Assistant Ally. Gen. J. Stanley Pottinger in a day or two before being forwarded to Lcvi. Either man could make changes in Ihe report's recommendalions bul ncilher is expected to make any major revisions. High FBI officials admit that Ihe bureau acted illegally in its surveillance of King in lhc 1060s. Deputy Associale F B I Director James A d a m s has testified ihai the tola! of 16 hugs placed in King's offices, home, and various hotel rooms were illegal iind were part of a probe into possible, bul never proven, Communist i n f l u - ence on King. ADAMS said that I h e l a t e Ally. Gen.' Robert F. K e n n e d y rcquesled t h e Lips, and t h n l the laic FRI Dircclor .f. F.dgar Hoover, ;i hitter foe of King, knew about them. The current FKI director. Clarence M. Kclley. told Congress last December Ihal "three or four" s l i l l living former F B I officials "should be prosecuted." William Sullivan, a form e r FBI assistant director, headed the Domestic Intelligence Division d u r - ing the lime of the King harassment and a copy ol an anonymous n o t e to King, suggesting he commit suicide, was found in Sullivan's files. Sullivan contends il was planted there. Among Hoover's closes advisors during t h a i same period were two former assistants to the director A.M. Bclmont and Carlha D. (Dekc) Drtaach. who were his Irouhleshootc^ . on special projects. When allegations of CI.V ; .inrt FRI misdeeds first surfaced n year ago. the 1 Ford administralion Â· t h a t a n y w r o n g d o i n g would be exposed and punished. So lar no CIA or FBI employe has been indicted. The Newest Long Beach Resfauranf" Limited Reservations Phone 437-0656 for parking information 430 EAST OCEAN BLVD. Near l.fnden Ave. Downtown Long Beach Have LUNCH and WATCH the GRAND PRIX FRI.-SAT.-SUN. in an Exotic Middle East Atmosphere All 3 days Includes Lunch and Admission to watch the Grand Prix sown 25 payng thci ndsjer your Scotch; ofthis!' IMPORTED SCOTCH WHISKY In Scotch, the bottom line is taste! B L C N D E C S C O T C H W H I S K Y . 8 0 P R O O F . W E B S T E R I M P O R T S . I N C . . B E V E R L Y H I L L S , C A L I F .
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