CIA Response to Wall Street Journal Allegations of Possible CIA Operations in Arkansas

ROUTING AND RECORD SHEET SUBJECT: Arkansas FROM: (Optional) Wall Street Journal Allegations of Possible CIA Operationa in (h){3) {hit |30 June 1994 TOs otticer designation, room number, and building} OFFICER'S INITIALS 1, DO Registry 2, Special Assistant Deputy Director for Operations 3. Associate Deputy Director for Operations COMMENTS (Number each comment to show from whom to whom. Draw a line across column after each comment.) A Deputy pirector for Operations RELEASE 5, Executive Registry APPROVED FOR DATE: 23-Sep-2009 6, Executive Assistant Director of Central Intelligence EX/DIR cc: 12, FORM 1-79 USE PREMOUS EDITIONS 610 (EF CYNQA9°T TDP SEGRET | 9.0 yun 19h MEMORANDUM FOR: Executive Assistant Director of Central Intelligence VIA: Deputy Director for Operations FROM: SUBJECT: Wall Street Journal Allegations of Possible CIA Operations in Arkansas 1. Background: The Wall Street Journal of 29 June 1994 contains an article entitled "Mysterious Mena" by Micah Morrison which claims possible CIA activities/operations in the mid-80s at Arkansas' Mena Intermountain Regional Airport. The article states in the early to mid-80s Rich Mountain Aviation at Mena was used as a base of operations by a cocaine smuggler, Adler Seal, who traveled to Nicaragua in 1984 with a CIA equipped aircraft to photograph Sandanista involvement in drug running. The article also suggests mid-80s training of Contras at a site ‘near Mena Airport on land owned by the head of Rich Mountain Aviation. The author of the article suggests that Seal was flying drugs into the U.S. and Contras and weapons out. A new book, according to the article, claims Gov. Clinton, and his inner circle, along with Oliver North and CIA were involved ina conspiracy which included training Contras, sending weapons to Central America, smuggling cocaine into the U.S. and laundering funds through Arkansas banks. 2. While it is not possible for us in the short period of: time to research the files related to the period of this article, we can say with certainty that the DO has never had a proprietary at Mena nor is there any record of dealings with Rich aman Aviation. hen a Mena Airport Tacility was used WARNING NOTICE CL BY INTELLIGENCE SOURCES DECL OADR OR METHODS INVOLVED DRV SECHET AY) oP (87 SECRET SUBJECT: Wall Street Journal Allegations of Possible CIA Operations in Arkansas 4. Our records also show support in terms of training operation at Mena Airfield. The exercise : 5. We have canvassed officers and there is no indication Contra training of any kind was undertaken by CIA at Mena or anywhere in Arkansas. Because we are dealing with a period ten years ago, a review of the files would be necessary for possible documentary conrirmation the Mena area was never used by the Agency for training. 6. It is believed Mr. Seal had an aircraft equipped by CIA to photograph Nicaraguan drug lords. Seal was at the time a DEA asset and the camera was installed at the request of DEA. Research will be required if additional information on this operation is required. 7. The book mentioned in the article "Compromised: Clinton, Bush and The CIA" claims a conspiracy which exists only in the minds of the authors. SUBJECT: Wall Street Journal Allegations of Possible CIA SECRET Operations in Arkansas (30 June 94) Distribution: Orig & 1 - ee a oe Oe oe 1 Addressee Executive Registry EX/DIR DO Registry SA/DDO ADDO DDO povenc— F uw eve wate [buy Aauow ay Mojfo} 0} PI} T aw Alaaq atau) Ino pauaddey wYyM MOUX Ale 721 1,UOP aM,, ‘Shes uvoung “ay .. 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A small conspir- acy-theory industry has grown up around the mysteries of Mena. In a new book, “Compromised: Clinton, Bush and the CIA,” authors Terry Reed and John Cum- mings claim that Gov. Clinton and his in- ner circle, along with Lt. Col. Oliver North and the CIA, were involved in a conspiracy that included training Contras at Nella, . sending weapons to Central America, smuggling cocaine into the U.S. and laun- dering funds through Arkansas banks. Lit- tle hard evidence is presented to back up these startling claims, yet the book should not be dismissed out of hand. Certainly, something was going on at Mena and Nella. And the authors raise the interest- ing question: What happened to all of Barry Seal's cocaine money? Intriguing Coincidence In an intriguing coincidence, while run- ning Barry Seal as an agent, the DEA also was conducting an investigation into the drug-related activities of Little Rock bond | dealer and Clinton supporter Dan Lasater. In October 1986, as Mr: Lasater was being charged in Little Rock with conspiracy to distribute cocaine, the DEA confirmed that he was the target of a drug-trafficking probe involving his private plane and a small airfield at the New Mexico ski resort Angel Fire, which Mr. Lasater purchased in 1984. ; Mr. Lasater's bond shop also executed a mysterious series of trades on behalf of Kentucky resident Dennis Patrick, who says he had no knowledge of the millions in trades reflected in his account in 1985 and 1986. It’s unclear what these trades represent, since Mr. Patrick’s confirma- tion slips show only paper transactions, with little money in or out. Yet it’s inter- esting to note that the hectic activity in the account came to an abrupt halt in Feb- ruary 1986—the month Barry Seal was killed. Of course, it all may be just a coinci- dence, and perhaps Gov. Clinton did not even know that drug smugglers, the CIA and the DEA were operating in his back- yard. Perhaps he did not want to know. Af- ter all, as we have come to learn, Bill Clin- ton’s Arkansas was a very strange place. Mr. Morrison is a Wall Street Journal ed- itorial page writer.