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CHAPTER ONE
Conservatives Worry and the Cover-up Begins
Late at night in the watering holes of American intelligence agents, the mention of Stanley K. Sheinbaum's name can still arouse a muttering of anger. Sheinbaum was the first person to go public with his experience of CIA activity in the United States--a story about the Agency's infiltration of a legitimate civilian institution. Sheinbaum so embarrassed senior officials of the CIA that they set in motion an elaborate internal operation intended to prevent anyone else from ever doing what he had done.
Sheinbaum's connection with the CIA began in the 1950s, a period when security officers at the rapidly expanding Agency were sometimes overworked. On occasion they neglected to ask someone to sign a secrecy contract, which was normally a prerequisite of employment. Once signed, it committed a CIA agent to complete secrecy, beginning with the first day on the job and continuing until death. But Sheinbaum's association with the CIA was indirect, through a university that turned out to be working under contract with the Agency. He was never a CIA employee and, as far as he can remember, was never asked to sign a secrecy agreement. During his days as a doctoral student at Stanford University and as a Fulbright fellow in Paris, Sheinbaum developed a strong interest in helping the economies of underdeveloped nations expand. When his Fulbright ran out in the summer of 1955, he landed a position at Michigan State University, working on a $25 million government project to advise South Vietnam President Ngo Dinh Diem. By 1957, Sheinbaum was coordinator of the project.
His new responsibilities included inspecting work in Vietnam. Before he went on a trip there in 1957, university officials told him about the general CIA connection; once there, Vietnamese officials informed him that his project staff included CIA officers. The revelation bothered him. He thought it inappropriate that he and other legitimate academic advisers were being used as cover for U.S. government manipulation. Sheinbaum left Vietnam feeling that his work and his program had been compromised. Upon his return to the United States, he was further entangled when he was called upon to meet with four top South Vietnamese officials in San Francisco. "Within an hour of their arrival," Sheinbaum later recalled, "the youngest, a nephew of Ngo Dinh Diem, conspiratorially drew me aside and informed me that one of the others was going to kill the eldest of the group." While taking steps to thwart the plot, Sheinbaum realized that his original goal, the economic improvement of impoverished nations, was getting lost in his administrative work as coordinator. His growing dismay--at what he later called the "unhealthy" CIA component and "the general U.S.policy ... in Vietnam"--led him to resign from the project in 1959.
By this stage, however, Sheinbaum had information that was confidential. Following the buildup of U.S. troops in Vietnam and the assassination of Diem, Sheinbaum decided it was his patriotic duty to publicize information that he hoped might put the brakes on U.S. involvement. Writing about the connections between Michigan State University, the CIA, and the Saigon police (with the help of Robert Scheer, a young investigative reporter), the Sheinbaum story was to appear in the June 1966 issue of Ramparts magazine. The article disclosed that Michigan State University had been secretly used by the CIA to train Saigon police and to keep an inventory of ammunition for grenade launchers, Browning automatic rifles, and .50 caliber machine guns, as well as to write the South Vietnamese constitution. The problem, in Sheinbaum's view, was that such secret funding of academics to execute government programs undercut scholarly integrity. When scholars are forced into a conflict of interest, he wrote, "where is the source of serious intellectual criticism that would help us avoid future Vietnams?"
Word of Sheinbaum's forthcoming article caused consternation on the seventh floor of CIA headquarters. On April 18, 1966, Director of Central Intelligence William F. Raborn Jr. notified his director of security that he wanted a "run down" on Ramparts magazine on a "high priority basis." This strongly worded order would prove to be a turning point for the Agency. To "run down" a domestic news publication because it had exposed questionable practices of the CIA was clearly in violation of the 1947 National Security Act's prohibition on domestic operations and meant the CIA eventually would have to engage in a cover-up. The CIA director of security, Howard J. Osborn, was also told: "The Director [Reborn] is particularly interested in the authors of the article, namely, Stanley Sheinbaum and Robert Scheer. He is also interested in any other individuals who worked for the magazine."
Osborn's deputies had just two days to prepare a special briefing on Ramparts for the director. By searching existing CIA files they were able to assemble dossiers on approximately twenty-two of the fifty-five Ramparts writers and editors, which itself indicates the Agency's penchant for collecting information on American critics of government policies. Osborn was able to tell Raborn that Ramparts had grown from a Catholic lay journal into a publication with a staff of more than fifty people in New York, Paris, and Munich, including two active members of the U.S. Communist Party. The most outspoken of the CIA critics at the magazine was not a Communist but a former Green Beret veteran, Donald Duncan. Duncan had written, according to then CIA Deputy Director Richard Helms, "We will continue to be in danger as long as the CIA is deciding policy and manipulating nations." Of immediate concern to Raborn, however, was Osborn's finding that Sheinbaum was in the process of exposing more CIA domestic organizations. The investigation of Ramparts was to be intensified, Raborn told Osborn.
At the same time, Helms passed information to President Lyndon Johnson's aide, William D. Moyers, about the plans of two Ramparts editors to run for Congress on an antiwar platform. Within days, the CIA had progressed from investigating a news publication to sending domestic political intelligence to the White House, just as a few members of Congress had feared nineteen years earlier.
Upon publication, Sheinbaum's article triggered a storm of protests from academicians and legislators across the country who saw the CIA's infiltration of a college campus as a threat to academic freedom. The outcry grew so loud that President Johnson felt he had to make a reassuring public statement and establish a task force to review any government activities that might endanger the integrity of the educational community. The task force was a collection of political statesmen--such as Attorney General Nicholas Katzenbach and Secretary of Health, Education, and Welfare John Gardner--but also included Richard Helms, the CIA official who himself had been dealing in political espionage. The purpose of the task force, it soon became clear, was to forestall further embarrassment and preclude any congressional investigation of CIA operations. Helms, furthermore, organized an internal task force of directorate chiefs to examine all CIA relationships with academic institutions--but that review, from all appearances, was designed only to ensure that these operations remained secret.
Meanwhile, CIA officers spent April and May of 1966 identifying the source of...
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