© Society of Former Special Agents of the FBI, Inc. 2009 Interview of Former Special Agent of the FBI W. Peyton George (1962 – 1969) Interviewed by Brian R. Hollstein On June 29, 2009 Edited for spelling, repetitions, etc. by Sandra Robinette on October 7, 2009 Edited for content and chronology, etc. by W. Peyton George on November 17, 2009. Brian R. Hollstein: My name is Brian R. Hollstein. Today’s date is June 29, 2009. I’m talking to Peyton George. What’s your middle name, there? George: The Bureau started me out with William P. George, Jr. and in midstream I changed my official bureau name to W. Peyton George. Everyone had wanted to be chummy and call me Bill. W. Peyton George is my professional name and what I have used ever since I left the Atlantic City RA, and throughout my legal career. Hollstein: Okay. Is Peyton a family name? George: Yes. I had a great-grandfather, Peyton Randolph Orr, named after the patriot, Peyton Randolph. Hollstein: Okay. What were your dates of service with the Bureau? George: I came in the Bureau in January of 1962, to New Agents Class # 5, and I left in October of 1969 to another government agency. Hollstein: Well, we overlap a little bit there. Okay. I’m going to turn off for a moment. Hollstein: Okay. We’re back on and we’ve checked to make sure the recordings is going okay. First of all, I’ll be sending out to you a copyright form and I’d appreciate it if you’d fill it out and send it back to me. George: Sure. W. Peyton George June 29, 2009 Page 2 Hollstein: There are some little ground rules on these interviews. We don’t want the names of informants mentioned, or their administrative designations. If you need to talk about an informant, give the person a name of some kind that we can use while we’re talking and that doesn’t identify them. No classified information, no information that you know to be classified, that is; and no mention of sensitive investigative techniques as this will be available to the public in the future. What offices were you assigned to? George: My first office was Richmond, Virginia. After a few months at the field office, I became a Resident Agent (RA) in Lynchburg. From there I was transferred to Newark, New Jersey. After a few months in Newark, I became an RA in Atlantic City, New Jersey. From there I was transferred to the Washington Field Office in DC. Hollstein: Okay. Let’s go back a little bit more and ask you where you’re from originally, and how you happened to find the Bureau; and where you went to school? George: I grew up on a dairy farm near Ada, Oklahoma. After a stint in the oil fields, the Army, and some college, I became a Police Officer on the Oklahoma City Police Department. I attended the University of Oklahoma, East Central State College, Oklahoma City University and graduated from Central State College, now the University of Central Oklahoma, at Edmond, OK, with a degree in Math and Physics. I worked night shifts on the Police Department and attended day classes. The only contact I had had with the FBI until I applied was with an old time John Dillinger era FBI Agent named Weldon “Spot” Gentry. He taught courses in my Police Academy Class. He was a contemporary of famed FBI Agent and SAC, Jelly Bryce. Gentry taught the three-hour block of instruction on when to use deadly force, or when to shoot or not to shoot. I never forgot the way he summed up his three-hour block of instruction. He said, “Boys, remember, if somebody’s going to be buried and somebody’s going to be tried, make sure you’re the one that’s tried.” Hollstein: (Laughing) 2 W. Peyton George June 29, 2009 Page 3 George: I never forgot that. Fortunately, I never had to shoot anyone. Incidentally, Jelly Bryce, the awesome pistol shot also came off the Oklahoma City Police Department, a generation or two ahead of my late younger brother, SA Supervisor Thomas H. George, and me. Hollstein: Well, we’re very much interested in Jelly Bryce. I’ve done some interviews of people who knew him, physically knew him. George: Okay. Hollstein: Not former Agents, but family of former Agents. So it was a kind of an interesting thing. George: Have you seen Ron Owens book? Jelly Bryce, the Legendary Lawman. Hollstein: I don’t have it. No. George: Owens is a retired Oklahoma City Police Captain who has written several books that tell the story of the guys in early law enforcement from Oklahoma, such as Jelly Bryce, Spot Gentry, and other gunslingers from the gangster era. Hollstein: Well, good. George: In any event, after I finally received my Batchelor’s degree from the University of Central Oklahoma in 1961 (my fourth college under honorable conditions), I took the Treasury Law Enforcement Exam at the urging of a Secret Service agent friend, Jack Neilson, from my night law school at Oklahoma University Law School. All this in the same time frame, I both received a direct commission as a Second Lieutenant in the 95th Infantry Division Military Police (MP) Company, Army Reserve, where I had been a Sergeant, and learned from one of my colleagues on the Police Department that the FBI was recruiting science majors. I made a call to the Oklahoma City FBI Office and then met with SAC Lee Teague. My application took several months to process with the background check, physical, and so forth. Not having heard from the FBI several weeks after completion of my Physical Exam at Tinker Air Force Base, I phoned the local FBI Office at 8:00AM one morning, having just finished my 11:00PM to 7:00AM night shift. I called to inquire about the status of my application. 3 W. Peyton George June 29, 2009 Page 4 George: I was told that due to a mix-up, Mr. Hoover’s telegram notifying me of my agent appointment had gone to the wrong address a week earlier. In any event, I only had three days to get to Washington, DC. After having worked all night, during the day I cleaned out my apartment, sold my police uniforms, and was driving toward DC that night. Hollstein: (Laughing) Oh my! That’s got to be some sort of a record I would think. George: It was. But I thought it would be the great opportunity it turned out to be. Hollstein: Uhm-hmm. George: After reporting in, just in time, at DC, we members of New Agents Class number 5 went to Quantico on a bus. At Quantico I thought I had died and gone to Heaven. I was making more money than the Chief of Police in Oklahoma City. I was sleeping at night in a bed and eating three meals a day. Hollstein: (Laughing) George: I gained something like twenty-five pounds during New Agents Class. Hollstein: That’s an unusual thing in itself. George: My Class Counselor was Dan Brandt, whom I’m still in touch with. After completing the FBI Academy, under the direction of John Malone and Hank Sloan, I was transferred 100 miles south to Richmond, Virginia, as my first office. Hollstein: Uhm-hmm. George: My SAC there was Earl E. Brown. My ASAC was Harry (the hat) Morgan. My supervisor was a wonderful man and great mentor, Hershel Caver. I think that Tom Tully replaced ASAC Harry Morgan, before I left the division. Hollstein: What types of cases did you handle there in Richmond? 4 W. Peyton George June 29, 2009 Page 5 George: Well, for the first two or three months I was pretty much on the road, filling in at the Alexandria, Virginia RA, or wherever I was needed. I spent a couple weeks on a surveillance of a fellow named Clive Rigdon, which is a story in itself. Clive Rigdon had a trailer house similar to a large air stream trailer, which he towed behind his large Cadillac sedan. The trailer had all kinds of derogatory remarks painted on it, mostly about the FBI, Mr. Hoover, and so forth. I’ll send you a photograph of that one. FBI Headquarters was reportedly concerned, and wanted to know whenever Rigdon might come back into DC. The only way to do that at the time was to follow him around for a couple of weeks. Hollstein: Uh-huh. George: He was camped out in Fredericksburg, VA for a while, and then he was out in western Virginia on the Shenandoah Parkway where he would stop for few days at a time. There wasn’t much to do out in the mountains with two bureau cars and a painted up trailer house on narrow roads. A discrete surveillance was not in the cards. I would periodically talk with Rigdon at night as we stood on the roadside between his trailer and our bureau cars. He seemed like a pretty decent guy. I would not give him my name, so he called me “Anonymous Joe” though he obviously had a beef with the government in general and the FBI in particular. He was annoyed that some agents would throw rocks at his trailer to annoy him and his wife, which also seemed inappropriate and immature to me. The best I could determine from him over several days chatting was that he had worked in a Government Defense plant somewhere in the Midwest during World War II as a machinist. After the war ended the discipline deteriorated in the plants. Employees were stealing things or misappropriating and misusing government property for their own projects. He kept reporting these matters to authorities, and eventually he lost his job, for which he blamed the FBI. That drove him to paint unflattering remarks on his trailer, and to periodically go on tours so that everyone could see what he thought. After one of these nightly chats I said to him “You’re acting like a nut, you know it, running around here with this trailer all painted up. You ought to deal with this government problem with your Congressman or Senator”. The last time I saw him, he had left the trailer in Virginia and had driven into DC in the car. 5 W. Peyton George June 29, 2009 Page 6 George: We followed him to Capitol Hill where he parked. He entered the Russell Senate Office Building with a big stack of papers in his arms. He gave me a big wave as he entered. As far as I know, that was the last we heard from Rigdon. Hollstein: Uh-huh. Okay. Where did you go from there? George: After a few months in Richmond I was assigned to the Lynchburg, Virginia Resident Agency (RA). Hollstein: Uh-huh. Okay. And what kind of work did you do in Lynchburg? George: Well, the Lynchburg RA covered the City of Lynchburg, and the five surrounding counties of Appomattox, Campbell, Buckingham, Bedford and Amherst. We had parts of the Shenandoah National Park or Forest in my territory, as well as the Shenandoah Parkway, so we had some Crime on Government Reservation cases. Babcock and Wilcox made reactors for nuclear submarines near Lynchburg so we had some Atomic Energy Act cases. We had several colleges, each of which generated applicant cases, and we had a suspected deep cover Soviet Agent. He was a professor at one of the colleges, and periodically under technical coverage. This brought down Agents such as Aubrey (Pete) Brent from the Washington Field Office from time to time. There were the usual bank cases and thefts from interstate shipment. One of my larger classifications was military deserter cases. It seems some sailors would leave the ship when it docked in Norfolk, VA, to go home on leave to chop wood for the winter, and forget to go back to the ship. Hollstein: Uhm-hmm. The volume stuff that most of us cut our teeth on? George: It was like a general law practice. Let’s see. I’ve made a little list in chronological order so I could remember forty years ago. Bear with me a minute. Well, Lynchburg was supposed to be a two-man RA, but the fellow that had been out there from the 1940s, Jack Freeze, had various medical problems and back problems. He was sick or away from the office a good portion of the time that I was assigned there. For most practical purposes, I was in a one-man RA in my first office. Hollstein: Which is a lonely feeling, I’m sure. 6 W. Peyton George June 29, 2009 Page 7 George: Not at all. At work my partners were Virginia State Troopers or Lynchburg Police Officers, whenever I needed help or to arrest anyone. The radio in my Bureau Car was with the Virginia State Police, not the FBI. My dispatcher was the Appomattox Division Headquarters. In that connection, I had mentioned one of my major classifications was military deserters. I knew from my experience on the Oklahoma City Police Department that if a police officer picked up a deserter and returned them to military control, they were entitled to a twentyfive dollar reward. It came from the deserter’s pay. Federal officers were not eligible however. Hollstein: Uhm-hmm. George: So I would always take a Virginia State Trooper or a local Police Officer with me to pick up a deserter. I’d let the officer book them into the local jail, and I would send in my AirTel reporting the apprehension. I closed another fugitive case for the FBI, and the police officer or trooper got twenty-five dollars. I helped buy a lot of shoes for trooper’s kids in that part of the state, and I always had willing helpers to assist me. Hollstein: (Laughing) George: I still have friends there to this day. Hollstein: Well, coming from a police department and having that experience had to be good, wasn’t it? When you’re dealing with the locals? George: It was a huge advantage. At that time there was a rift between the Bureau and the head of the Virginia State Police. However, I always got along great with the Troopers at the working level. Hollstein: Uhm-hmm. George: Having been a former Police Officer, I was precluded from working civil rights cases, and there were quite a few of those cases in Virginia at the time. I guess that it was discrimination against me as a former police officer on one hand, and a blessing on the other. Hollstein: Yeah. Absolutely. Were things heated up there at that particular time in your area? 7 W. Peyton George June 29, 2009 Page 8 George: Quite a bit. It seemed like when they had an incident; there were more TV camera men and newspaper reporters than there were alleged civil rights victims or pickets. Hollstein: Yeah. That was very common. Especially if they could work out of Richmond, or go over to Lynchburg from time to time. Yeah, we had it. I was in Tampa in first office and we had Civil Rights cases down there. And the amount of news and various other people that would show up, you’d have a cast of thousands very quickly. George: As I mentioned, I enjoyed great relations with local law enforcement personnel. We were all young then. One Lynchburg Police Officer was an especially sharp kid, Dennis Wayne Robertson. I suggested to him that he should go with the Virginia State Police because it provided better advantages, opportunities, pay and so forth. He replied that he had gone to the Army before finishing High School and did not have the High School diploma required by the State Police. I said, “Dennis, that’s not a problem.” I knew the lady who handled the High School Equivalency Program in Lynchburg. For the next several weeks he would come over to my apartment every Saturday and we would work through high school equivalency tests. As soon as he received his diploma, he applied to the State Police. I knew the women in the front office at VSP Headquarters from my days in Richmond. His application stayed on the top of the stack, and he quickly became a Virginia State Trooper. Dennis called me recently to tell me he was retiring after forty-four years in law enforcement. He had held most every job in the Virginia State Police hierarchy except being the head of it. Hollstein: (Laughing) George: For years every time he would get another promotion he called to thank me. Hollstein: That’s got to be a good feeling, helping guys along, bringing people along in their careers like that. That’s great. George: Yes, my own great opportunities came from people helping me. In that connection, I was alone at the RA when our division came under inspection. The Inspector’s Aide came out to inspect it. I took him to meet the Chief of Police, showed him around, and answered his questions. We had a very nice professional visit, and he gave me a lot of career advice. 8 W. Peyton George June 29, 2009 Page 9 George: His name was Hobson Adcock, a World War II Naval Officer with a law degree. He was assigned normally to the Crime Records Division in public relations but was on loan to the inspection staff for this inspection. When he left to return to Richmond he told me, “If you ever come through DC, stop by. I’ll be happy to show you around FBI Headquarters.” I don’t know whether he really meant it, or he was just being polite, but once I got my next transfer, I stopped by FBI Headquarters on the way to Newark. Adcock took me around and introduced me to Assistant Director Cartha “Deke” DeLoach, his boss, Don Hanning, Mr. Hoover’s secretary Miss Helen Gandy, and several other people in the Crime Records Division that I now don’t remember. I would cross paths with some of them a little later on to my benefit. I worked for Mr. DeLoach on the Democratic National Convention Special in 1964, and they got me transferred out of Atlantic City so I could attend more law schools. I would again work with both DeLoach and Adcock after the FBI when DeLoach became a Vice President of PepsiCo, Inc., and took Adcock with him Hollstein: Uhm-hmm. George: In Newark, I mostly worked Selective Service cases on ASAC Harold Campbell’s squad, and helped out sometimes in organized crime matters. The laws on Interstate Transportation in Aid of Racketeering and the like had been enacted shortly before I came to Newark. That part of New Jersey was a hotbed of organized crime and public corruption. For example, if we did a name check at the local police department on an applicant case, thirty minutes later it would often appear in technical coverage at some crime figure’s place when the police reported it to the crime figure. Hollstein: It took awhile for the Bureau and U.S. Attorney to catch up on those laws, and actually make good use of them. What did you do with Selective Service Cases? George Failure to register for the draft was a federal offense. Many so called “draft dodgers” came to our attention through various means and a case was opened. Some were ignorant of the law or had jumped ship in Jersey City. Some were from Puerto Rico with poor language skills or education, and many had no idea of the requirement. They were seldom prosecuted unless they became high profile, the interest being that they register. Once I got assigned the case I would pick them up in my Bureau car, take them over to the draft board, and register them. 9 W. Peyton George June 29, 2009 Page 10 George: Most did not speak enough English to get inducted on the spot. Thereafter, I would obtain a declination of prosecution from the AUSA on the grounds the subject was now registered, and close another case. I remember vividly one case where I called this Puerto Rican kid to tell him I would pick him up at a particular time. When I arrived at the families’ apartment in one of the high rise projects in Newark, this kid was dressed in a coat and tie, and the entire family was there, including the priest. They, I expect, feared that I was taking him to a firing squad. With the help of the priest as a translator I finally convinced them that I would have him back home in a couple hours. I mentioned earlier that at the time my FBI application was being processed I was attending my first semester at the Oklahoma City University Law School at night, still on the Police Department. I had to leave for New Agents Class before the finals, so SAC Earl E. Brown in the Richmond FBI Office gave me my law school exams for that semester in his office in Richmond. This probably has to be a first. Also, upon arrival in Richmond as a GS-10 FBI Agent, I received a letter from the Treasury Department appointing me as a GS-7 Customs Port Inspector in New Orleans. I respectfully declined. As a result of passing my exams in Richmond I now had ten hours law school credit under my belt. In Newark, I enrolled in Seton Hall Law School at night, which was downtown and near the FBI office. I lasted three weeks until SAC Ralph Bachman (whom I understand actually caught the Nazi saboteurs) found out about it and called me into his office. He said, “George, we hired you without a law degree. The only reason you’re going to law school is to get another job, and we’re not going to cooperate with you.” He transferred me on the spot. Hollstein: (Chuckle) George: That’s how I got to Atlantic City, and over the objection of an SRA who did not want me at all. Hollstein: (Laughing) George: Ralph did me a big favor because I would never have survived trying to attend law school in a small office where everyone has to go out when anything of major significance happens. Hollstein: Bachman. Do you know if he’s still alive? 10 W. Peyton George June 29, 2009 Page 11 George: I’m relatively sure he’s gone. He was old in the 1960s. Hollstein: Yeah. I don’t see him in the book, here. George: He was one of the really old time SAC’s. Hollstein: Okay. And in Atlantic City, you were there for how long? George: Until the end of 1964. Hollstein: What type of work did you do in Atlantic City? George: Atlantic City was an eight-man RA. This was back before the casinos and it was a rather seedy, run down place. But it had a nice beach, and it had the Atlantic City Convention Center, which drew a lot of national corporate and political events including the Miss America Pageant. I lived on the island near the boardwalk while the married guys lived in the suburbs on the mainland. I handled general criminal cases and lots of car thefts and fugitive matters. Hollstein: Uhm-hmm. George: Our RA territory had responsibility for Atlantic, Cape May and Cumberland Counties, which consisted of the southern tip of New Jersey. Organized crime families in Philadelphia had houses at Margate and Ventnor. Sometimes it seemed that every poor kid in Philadelphia stole a car to go to the beach on the weekend and stole another one to go home. Hollstein: (Laughing) George: So we might have two Interstate Transportation of Motor Vehicle cases per kid on Monday mornings. There was still a variety of great work though. Incidentally, the Kennedy assassination occurred while I was in Atlantic City. In fact, I was interviewing a bar owner about a stolen car left in his parking lot when the news came on the television. The bar owner was very upset that I was investigating a car theft instead of working the assassination case. Hollstein: Sure. 11 W. Peyton George June 29, 2009 Page 12 George: Lyndon Johnson is now the President and he came to Atlantic City occasionally for convention speeches. As a result, we FBI Agents were loaned to the Secret Service on the Presidential Protection Detail periodically. At that time, the Secret Service was a very tiny outfit until they were able to staff up after the assassination. Hollstein: And how were they to work with? George: The ones that I worked with were the street guys, and they were very professional. Hollstein: Uhm-hmm. George: They appreciated the help. Hollstein: They’ve grown considerably, I guess, over the years. George: I don’t know whether you are aware of the background on this but I was informed at the time that President Johnson never trusted the Secret Service. He felt, wrongfully no doubt, that they had allowed President Kennedy be killed. LBJ had much respect for, and kept close contact with, Assistant Director Cartha DeLoach. DeLoach had been FBI liaison with him when LBJ was a Senator. Once, when LBJ kept getting a busy signal while trying to call DeLoach at home (his children were on the phone), the next morning, which was a Sunday, the DeLoach’s were awakened by telephone company personnel there to install a direct line at the direction of the President. The FBI even opened a special Resident Agency near LBJ’s ranch in Texas Hollstein: Hmmm! George: The Democratic Convention in 1964 was held in Atlantic City in the year of the Kennedy Assassination. Attorney General Bobby Kennedy was trying to get the nomination away from LBJ. The Mississippi Freedom Democratic Party and others who were allied with Kennedy were trying to unseat the regular Mississippi delegation. The burned car bodies of the civil rights workers were being run up and down the streets in Atlantic City on trucks. There was chaos and potential for disruption. 12 W. Peyton George June 29, 2009 Page 13 George: Assistant Director Cartha D. DeLoach arrived with his entourage from FBI Headquarters, including Hobson Adcock, Don Hanning, and Elmer Todd. DeLoach announced to us assembled in the RA, including other agents who were brought in for this Special,”Men we are here because the President wants us here. He feels if any violence erupts it might cost him the election”. We had technical coverage on SNCC, Martin Luther King, CORE and others, all monitored in my apartment, as I lived on the Island near all the activity. The results of our technical coverage were being provided LBJ Aides Walter Jenkins and Bill Moyers. Mr. DeLoach covers this assignment in detail on pages one through seven of his book “Hoover’s FBI” Hollstein: Uhm-hmm. George: Fortunately, no serious violence erupted, and LBJ held on to the nomination. Hollstein: Uhm-hmm. George: Most of us received Letters of Commendation. Mine read “for my exemplary technical skill”. My assignment was in the State Police Command Post at the Convention Hall. Some agents were undercover with the activist groups and some worked the crowds developing information and defusing situations. Mr. DeLoach received an incentive award for his leadership. Our team was alerted for the 1968 Democratic Convention in Chicago because of our experience, but we subsequently were not called up. Hollstein: (Chuckling) Okay. Moving right along. Then you headed down to Washington Field. George: Yes, I was transferred along with twenty other single Agents, on one day’s notice, to the Washington Field Office for the “Walter Jenkins Special”. LBJ Aide Walter Jenkins was the one we were working closely with in Atlantic City four months earlier, but he was subsequently caught in a homosexual incident in the YMCA across from the White House. Our “Special” was to do background checks on all the White House Staff. I was the only one of the twenty-one who came out of an RA, thanks to my Crime Records friends. When the first opportunity came up, my name was on the transfer list for WFO, and this was it. They knew that I wanted to finish law school. Hollstein: Yeah, you specialize, then, in last minute running around, huh? 13 W. Peyton George June 29, 2009 Page 14 George: I’m the guy. Hollstein: (Laughing) Pull up stakes and, and move George: Then it only cost twenty-one cents a mile to move me. Hollstein: Uh-huh. George: At WFO, my Supervisor on the Applicant Squad was George Duffy. I started out doing background checks on mostly White House Staff. Coincidentally, until then, those who worked at the White House were never required to have a background check. Only if they came from the military or some other agency did they have one. President Johnson regretted losing his trusted aide, Walter Jenkins, from the YMCA incident, but he used the opportunity to get rid of the Kennedy holdovers he had been stuck with, several of them had personal or alcohol abuse problems. I interviewed a number of prominent government and other people during this period. I also worked closely with Provost Marshal General Carl Turner and his 1st CID Detachment, which were conducting parallel investigations on military personnel at the White House. Also, I frequently had a new Agent in tow from his New Agents Class. Hollstein: How long were you on this assignment? George: Happily, I got off the Applicant Squad after about nine months, and was assigned to S-2, the Soviet KGB Squad. My Supervisor there was Don Gruntzel. Courtland Jones was our overall Security Supervisor. Jones had his own Squad S-1, and supervision over all the other Intelligence Squads, which were under him. My SAC was Joseph D. Purvis, who wrote “The Era of J. Edgar”. When I left the FBI he told me that I could always come back. My ASAC was Jack McDermott. Both were very good to me. Hollstein: Uhm-hmm. George: I spent the rest of my time on this squad. Hollstein: Uh-huh. 14 W. Peyton George June 29, 2009 Page 15 George: Squad S-2 handled exclusively, known or suspected, KGB Agents. I was assigned as the Case Agent for a Soviet TASS correspondent named Viktor Kopytin. Agents with very active spies only had one case, while other agents with less active spies might be responsible for two or more. At the time, Kopytin’s closest friend or associate, from most appearances, was Oleg Kalugin. They and their families socialized together. Kalugin was later determined to have been the Deputy Resident and Acting Chief of the KGB Residency at the Soviet Embassy in Washington. Both had been exchange students in the United States and were the best of the best in their trade. Kopytin did not have diplomatic immunity. He was quite a scofflaw and near impossible to keep up with when he was driving in a car. Once, when he had amassed twenty-seven unpaid parking tickets, I pointed out his illegally parked vehicle to a DC Motorcycle Officer who promptly towed it. This resulted in an article in the Washington Post newspaper entitled “To the Viktor goes the Foil.” I will send you a copy. Hollstein: You have a story that you mentioned about an Average Garden Variety Spy Case involving Kopytin. Would you share it with us? George: Sure. You may want to clear some of this with the FBI as to national security but I assume by now after forty years and after the end of the Cold War most of this will not hold up to classification. But it was a classic beginning of a spy case. The Soviet KGB Agent was in a DC Bar where he overheard a conversation between two individuals who worked for Department of Defense related “think tanks”. The Soviet, under cover as a correspondent for a Soviet News Agency, eventually joined in the conversations about Multiple Re-Entry Vehicles (MERVs) and defense policy. One of the American’s grandfathers, who was Jewish, had emigrated from Russia years earlier. They developed a common bond based upon their ties to Russia. The American source reported his contact with a Soviet to the FBI as his security clearance required, and I, as the Soviets’ Case Agent, encouraged him to continue his relationship. Over subsequent weeks the Soviet would ask for help and information on innocuous items. At about the same time as this double agent case was getting started, Senator Fulbright, a liberal Democratic Senator from Arkansas in an effort to try to embarrass the Nixon Administration and score points with the left, chose to violate several federal law by releasing to the public an extensive list of classified projects and studies being funded by the Department of Defense. 15 W. Peyton George June 29, 2009 Page 16 George: The researchers included defense contractors such as Rand Corporation, Battelle, and others. Most of these studies were classified Secret and above. It became a shopping list for Soviet spies to test the legitimacy of their sources. For example, if a Soviet’s source worked for a government contractor, the Soviet would assume their source had access to, or would be able to provide the study done by that contractor. The Soviet began asking the source for certain classified studies, most of which were provided after appropriate clearances. A special board connected with the National Security Advisor at the White House would authorize release. I recall once going to International Security Affairs (ISA) at the Pentagon to discuss possible release of a classified study pertaining to Peoples Republic of China sought by the Soviet. I always remember the response of an ISA Official. He said “We would love for the Soviets to know what we know about the Chinese, sell it to them!” Over a couple of years the source and the Soviet met about every six weeks at restaurants throughout the DC and suburban areas. Each time the source would pass on certain information and reports, the Soviet would usually provide three to six thousand dollars in new twenty-dollar bills. We often wondered how much cash the spy left the embassy with, in relation to what was paid to the source. It was common knowledge then that Soviet handlers skimmed money from that which was intended for their sources. One Soviet called it the “coefficient of danger”. During the course of the operation the source relocated to Massachusetts with his job, but continued to return for the spy meets. We always put him in the better hotels including the Hilton at 16th and K or the Watergate Hotel as a part of his cover and to show the importance of the source in the eyes of the Soviet. The operation was funded by the Soviet’s money. We would pay the hotel bills with cash after recording the serial numbers of the bills we expended, and then turn in the remaining funds to the SAC’s secretary for further efforts to trace the origin. At one meeting the Soviet was being unusually pushy. When it came time to order dinner, the Soviet asked for recommendations. The source, with quite a sense of humor, said, “I think you should have the red snapper”. 16 W. Peyton George June 29, 2009 Page 17 George: On occasions we would photograph the two together in case there was ever a need to prosecute the Soviet. He did not enjoy diplomatic immunity, but our Government gave news personnel usually great deference. What we were really learning was the specific targets and interests of the Soviets, which was discernable in part from the questions they asked. The Soviet would punch his finger in the source’s chest demanding, “We want to know what your President is thinking!” As with refusing to admit there was a mafia in this country until Joseph 'Joe ' Valachi came out of it, and the FBI renamed it La Cosa Nostra, there was no recognition of a Political Branch in the KGB. We were still chasing after spies who wanted missile secrets when the Soviets had missiles as good as ours. This came to the forefront later with the Strategic Arms Limitation Talks (SALT). The source was growing more frustrated with the lack of use of the information he was providing, as was I. He was well connected politically, and was a friend of Ambassador Robert Ellsworth then working in the Nixon White House. The source’s father had a seat on the New York Stock Exchange and was equally politically connected. The source decided that he would talk to Ambassador Ellsworth about the FBI’s lack of interest in our double-agent case. I spent until the early morning hours in his hotel room at the Capitol Hilton Hotel telling him that there might be repercussions, but I did not deter him. In any event, and considering the levels in the Government we were dealing with, I had little concern that it would get out of hand. The next day the source went to the White House and had a long meeting with Ambassador Ellsworth. At the termination of the meeting, the Ambassador telephoned Assistant Director William F. Sullivan who was in charge of all national security matters for the FBI. My rather insecure supervisor in these situations, who had gotten a call from Assistant Director Sullivan’s office, came running through the Squad Room, shouting, “Do you know what your double agent is up to? He is headed to FBI Headquarters?” “Really?” I replied, silently delighted. As it turns out, my double agent source and Assistant Director Sullivan, both bright guys, had a delightful meeting. It was probably the first time the Assistant Director had talked to a real double Agent in contact with a Soviet KGB Agent. Little if anything changed for a while, and there was no fall-out for me from this meeting. 17 W. Peyton George June 29, 2009 Page 18 George: At that point in FBI History, Mr. Hoover had begun to grow inward and protective of his legacy. The cardinal rule was “do not embarrass the Bureau,” which meant Mr. Hoover. He was very sensitive of contacts in the news media for fear of adverse articles. Before we could interview a person in the media it was required that a background investigation be conducted and permission be obtained from FBI Headquarters. Thus, it became doubly difficult in dealing with news media spies as many of their contacts were with, yes, news media personnel. If one followed the arbitrary Headquarters rules to the letter, it would shut down all interviews, as a practical matter. As luck would have it, I was a friend of Alan Cromley, head of the Washington Bureau of the Daily Oklahoman in DC. He was also president of the National Press Club. We were both active in the Oklahoma State Society, something my Supervisor Hershel Caver in Richmond had advised me to do if I ever got to DC. (The State Societies sponsor the annual Cherry Blossom Festival). Cromley knew personally nearly all news personnel in DC. If our technical coverage indicated that my Soviet was having lunch with some American news media type, then, instead of doing a full field background check and taking a month, I would call Alan, tell him that my Soviet just had lunch with Mr. X of the New York Times, et al. Where upon he might suggest that I not contact the person because of perhaps their leftist or anti-FBI leanings, or else he would say for example “Hell, Mr. X is an old Marine veteran, do you want to talk to him?” Ten minutes later I would have a call from Mr. X who would provide a report and become another press contact. It was OK if someone called us instead and “volunteered” information. So I often became the “go to guy” for agents with newsmen spies. Mike Hudabaugh replaced Cromley as Press Club President and I enjoyed the same relationship with him. This would come in handy after I left the FBI when certain FBI Executives wanted to get their story out discretely during ABSCAM. Equally vexing at the time was that Mr. Hoover also forbade contact with universities with the same fear of potential embarrassment as with dealing with newsmen. The following morning after each spy meet, my source, along with other Agents who might join us from the squad, Robert Cavanaugh, Jerry Pangburn, Chad Marsh, or others, would meet to debrief the source. 18 W. Peyton George June 29, 2009 Page 19 George: It was paper intensive preparing those Letter Head Memorandums (LHMs). I grew tired of taking notes and was concerned that I might be missing something so I would put the old Dictaphone machine with the pink belts in a briefcase and take it to the University of Oklahoma’s Washington DC Office conference room (an office my wife ran), give the source the microphone and tell him “instead of “I” say “source” and instead of the Russian’s name, say “subject”. He would dictate these thirty page or longer LHMs which drove my supervisor nuts. My supervisor at one point even assigned fellow squad member SA Vern Weimer to me to do my paper work. A few days after one such debriefing I had picked up my neighbor and friend from Oklahoma, Air Force Colonel Jim Nelson, at the Pentagon in my bureau car to drive him out to a place near Andrews AFB where he could get a Kirby vacuum cleaner wholesale from one of my contacts. I knew that he was working in the subject area that the Soviet was talking about. I handed him a copy of the Secret LHM and suggested he read it as we drove. That evening he came over to my house, two doors away, in Riverside Estates near Mount Vernon. He told me that he had spent a very uncomfortable afternoon. He said he was working with 800 other people in the Pentagon on the US position for the SALT talks. From my LHM it was clear to him that they weren’t even in the same ballpark. He wanted to know how he could get an official copy of my LHM. The next morning I went in to my supervisor and told him of the request. To my surprise he told me to take them a copy. I took the bus to the Pentagon where Colonel Nelson met me. He ushered me into the office of a three star Vice Admiral who was Deputy Chief of the Joint Chiefs of Staff. Colonel Nelson and GS-12 Agent George sat patiently in front of the Admiral’s desk as he read the Letter Head Memorandum on the debriefing of my source. Periodically his bushy gray eyebrows would twitch and he would exclaim “those dirty bastards” as he turned the pages. When he finished reading, he asked a few questions about the background and bona fides of my source, and then said, “May I communicate with your headquarters?” My response was “Certainly”. What I did not know until forty years later was that Colonel Nelson and the Admiral could tell from the questions the Soviet was asking that the United States position in Geneva had been leaked. The Soviet even had the United States’ Position Points in chronological order. 19 W. Peyton George June 29, 2009 Page 20 George: The Admiral immediately went to Secretary of Defense Melvin Laird, who called Secretary of State Dean Rusk, who called in the State Department FBI Liaison and reamed him out, demanding to know how many other operations like this were going on that they had not be informed about? Welcome FBI to the Political Branch of the KGB. My case was one of the hotter ones in the Bureau for a short time until the Soviets invaded Czechoslovakia and the disarmament talks were put off. This was to the United States’ advantage so our side could regroup. Subsequently, a Washington Post correspondent was kicked out of Moscow and my Soviet was declared persona non grata partly in retaliation, and partly to get rid of him. This was in my last semester of law school at American University. I was carrying fourteen hours in an effort to finish. The FBI paper work was intensive as we closed out the case. A few months later I had passed the Virginia Bar and was hired as a GS-15 by the banking agency at the U. S. Department of Agriculture. My source was subsequently contacted by another Soviet, who directed him to meet the first Soviet, who had been expelled from the US, up in Montreal, Canada. The source initially could not get the attention of anyone at the FBI, as the case was presumed concluded and closed. Here I was, putting together a spy meet in Canada from the U. S. Department of Agriculture. My source and fellow cold warrior visits me (40 years later) in Santa Fe periodically as he has a sister living there. Hollstein: Uhm-hmm. George: I have a recollection about us putting a little spy on the wrong airplane, not one of Squad S-2’s finer moments. Hollstein: (Laughing) George: The person was Alexi Zencavages (phonetic). I don’t recall the exact spelling but it would be listed in the diplomatic section of Congressional Directories from the mid to late 1960s as a Second Secretary of something in the Russian Embassy. Our squad dealt with known or suspected Soviet KGB personnel. While we each had our own case or cases, we were periodically saddled with surveillance on one another’s spies. On one such occasion we were directed to shadow a known KGB Agent of Lithuanian extraction assigned to the Soviet Embassy in DC. He was rather small in stature compared to most of the other diplomats. 20 W. Peyton George June 29, 2009 Page 21 George: This diplomat had gotten the required permission from the State Department to travel to New York City. His case agent wanted to know what the Soviet was doing while in New York. Was he making a spy meet, or was he simply there on legitimate embassy business? Our job was to confirm that he got on a particular plane, and the New York Agents would then pick up the surveillance upon the target’s arrival in New York. They would endeavor to determine what he might be doing while there. We reciprocated for the New York Office with respect to their known or suspected KGB Agents assigned to the UN or Consulate in NYC when they visited DC. On this day we tailed him to National Airport (now Reagan Airport). Once inside the terminal he seemed to be taking his time in getting to the gate for the Eastern Airlines Shuttle. My squad members, Alfred L Anderson, Robert Taylor, Philip A. Thielman, and I were hoping to get this assignment out of the way promptly. It was payday Friday and traditionally we went down to the Flagship Restaurant on the waterfront for a seafood lunch. Thus, this slow Soviet was beginning to interfere with our lunch plans. We could see out the terminal window that the plane was already boarding. I was dressed in a dark “Hoover Blue” suit, which was similar to those worn by Eastern Airlines employees at the time. I approached the Soviet and said “Sir, your plane is leaving.” Whereupon he picked up the pace toward the departure gate. By the time we arrived at the gate the air craft (and this was back in the days when the steps folded down from the inside of the airplane) had completed boarding and the steps were already being retracted for departure. I approached the airline gate agent, identified myself by flashing my credentials, and told her to put the guy whom I pointed out to her on the plane. The gate agent called the pilot, and hustled the little spy out on to the tarmac as the pilot put the steps back down. I remember how forlorn and pathetic he appeared as he stood there alone on the tarmac with his briefcase, awaiting the descending steps with a hundred sets of eyes on the plane watching and wondering who this dignitary was that was holding up the flight. In any event, we finally got our ward on the plane, called the New York office, told them to look for him on the next shuttle, and went on to our lunch. A few months later, while on a personal trip to New York City, I learned that the shuttle on the hour went to LaGuardia and the shuttle on the half hour went to Newark, New Jersey. We had put the little spy on the shuttle to New Jersey. It became clear why the New York agents had missed him upon arrival, as well as the potential for an “international incident”. 21 W. Peyton George June 29, 2009 Page 22 George: Here is another situation involving this same Soviet. One of our tasks was to put selected Americans in touch with Soviet KGB Agents in an effort to develop a relationship and hopefully a double agent situation. In this case, we had the Air Force Office of Special Investigations (OSI) identify an Air Force enlisted man of Lithuanian extraction. We arranged for the airman to be in the parking lot of the Soviet’s apartment complex when the Soviet arrived home in the evening. The Air Force person was pretending to deal with a flat tire. As the Soviet walked by the car, our Air Force Lithuanian USAF enlisted man was loudly cursing in the Lithuanian language and lamenting his difficulty with changing a tire. This attracted the attention of the target. He engaged the enlisted man in a conversation in Lithuanian, subsequently developing a relationship. Once they established a relationship, the OSI working with CIA, would transfer the airman to an overseas military base in, for example Korea, Egypt, etc., to see who would come out of the woodwork to make contact with him. I do not know the rest of the story here, just the beginning, but this was one of the creative methods we used at the time to confirm the identities of KGB personnel operating in particular countries. Hollstein: You told me about an unusual installation. George: Yes, we had a special camera arrangement set up in a woman’s apartment. In hindsight some of this may not sound proper or necessarily be flattering to the FBI, but at the time we were in the Cold War and looking for any opportunity to turn a Soviet Agent, or if not, to cause problems at home and abroad. Kopytin was quite a ladies man, though married to a beautiful Russian woman. I will not use the names to protect the guilty. One of my sources was a young woman librarian with an international organization who had met the Soviet through a newsman friend while attending a correspondent’s dinner. They struck up a relationship. Never under estimate a librarian. They are smart, well read, patriotic and some are willing to work undercover if need be, to further the cause of freedom and democracy. The Soviet’s MO was to call every month or so, tell her he was in the area, and ask if he could come by. 22 W. Peyton George June 29, 2009 Page 23 George: She lived in an efficiency apartment in Southwest DC on 4th Street on the sixth floor. By coincidence, my wife and I lived in the same development at 201 Eye Street, SW in another apartment building on the sixth floor. Her balcony was about 200 feet away, over the tops of some townhouses, from ours. Our plan was to endeavor to obtain some compromising photos that we might use to embarrass him. At the time, our perception was that his wife was a jealous kind, and we were in the middle of the Cold War. With my librarian’s permission, fellow squad member, the late Robert E. (Bob) Beams, and I installed a camera inside a large plastic clothes bag in her closet. We cut a hole through the drywall and mounted a two-way mirror, which faced the sofa bed in the one room apartment. The FBI Lab had fitted the camera with a receiver that would click the shutter whenever the microphone of a handy talkie two way radio, was keyed. Technology was not all that good back then for no, or low, budget operations. The limiting factor was that the handy talkie had to be no more that about 200 feet away, and with no obstructions that might weaken the signal. We had sixty frames of film in the camera. The plan was to key the mike about every minute, thereby getting an hour of activity. This matter dragged on for several weeks until one night the Soviet did finally call again. Madam Librarian tried to reach me on my beeper. Unfortunately, I was out at law school class and my beeper, which I had carried religiously for the past six weeks, had inadvertently been turned off. She then called my apartment and told my new bride that she was unable to reach me. She reported that the Soviet was on his way up, and time was short. My wife had emergency instructions, so she turned on the handy talkie radio. The temperature outside on the balcony was in the teens. She was trying to dry her hair with one of those old backpack style hair dryers with a bonnet on it and wearing a robe out in the bitter cold. At the same time she was trying to take remote photos of a Soviet in bed. Her microphone clicks out in the cold became more frequent than one minute apart. We thereafter pulled out the camera installation, and Bob Beams and I refinished the dry wall in her apartment. A few months later, I was sitting in the back row at an in-service course down at Quantico when two guys from the FBI Lab came in. They had a big poster display of our camera setup, and talked about the great installation we recently used in southwest DC. 23 W. Peyton George June 29, 2009 Page 24 George: I was the only one in the room who knew that, after all that effort, the only thing we got was a bunch of photos of a Soviet mixing himself a drink, and that the photos we did get were taken by my new bride. Mr. Hoover might have had us all on the next bus to Butte or worse had he known. As an aside, the librarian enjoyed the attention of the several agents she came in contact with over several months. One night about midnight I was awakened by a phone call with the message. “Look out your balcony”. I grabbed the binoculars and saw two of my (just say they had been drinking) squad members along with the librarian waving their arms at me from her balcony. I had to get dressed, go retrieve them from her apartment, and drive them home in northern Virginia in a snowstorm. The buses were no longer running that late. It turns out that they had all gone to “The Place Where Louis Dwells”, a nearby local bar and restaurant, for dinner and each of them had enough to drink. Additionally, thirty years later I would learn from a former KGB Officer, Oleg Kalugin, that both the Soviet correspondent and his wife were having affairs within the embassy community, and that our efforts would have had little or no impact. Kalugin also identified Kopytin as the one who had placed a microphone in the Senate Armed Services Committee hearing room. Hollstein: Those were busy times. George: Yes, in WFO we had the Martin Luther King riots and the like. I think we had 500 Agents in WFO at the time. I would sign up for every weekend that was available, for surveillances and the like, so I could take two days off during the week to deal better with law school. Hollstein: Yeah, I can see where that would be a big advantage. You finished your degree then? George: Yes, I finished my degree at American University. When I got to DC I enrolled in Catholic University Law School since it was close to the office. Eventually, CU Law School moved out to the main campus. I then switched to American University. This was my fourth law school under honorable conditions. Hollstein: Uh-huh. Did the law degree make much difference in your assignments? 24 W. Peyton George June 29, 2009 Page 25 George: No. The FBI didn’t have an interest in that at the time, and there was an unwritten rule that FBI Agents could not become AUSA’s or Justice Lawyers at the time, something I would have enjoyed doing. Hollstein: Uhm-hmm. Okay. Now, let’s see what else can we ask you about here? George: Well, for a street agent, I met Mr. Hoover twice. Hollstein: How was that? George: The first time was in New Agents Class when part of our class work was in the Old Post Office Building in DC. We each kept an extra clean white shirt in the classroom for about a week while we were on call to see the Director. Mr. Hoover prided himself in the fact that he had met every one of his Agents at the time. When we finally got the call to come to the Director’s office, we changed to our extra shirt after being coached on firm handshakes and no sweaty palms. Twenty-eight of us went in one door to shake hands with the Director and we left out the back door in probably less than two minutes. Hollstein: (Laugh) George: The then number two guy in the FBI, Clyde Tolson, during these two minutes, was standing over in the corner behind the palm plant awaiting the Director’s signal, just in case someone in the class did not make a good appearance, or had a weak handshake, or a sweaty palm, or other issues that would upset Mr. Hoover. Fortunately, for us and for our class counselor, we each passed this test. Hollstein: Well, that’s good. George: So technically I “had” met Mr. Hoover. My sometime career coach, Hob Adcock, from the Lynchburg RA inspection, had strongly advised me that if I ever went back for an In-Service Class that I should ask to see the Director. This was an option given at the start of each Class and not without some risks. Adcock insisted that this was a good career move and that I needed a favorable memo in the file from the Director if I ever wanted to advance. Some agents used this opportunity to plead for a transfer to a location for better medical treatment of family members, and so forth. 25 W. Peyton George June 29, 2009 Page 26 George: My orders for an In-Service Course arrived. SAC Ralph Bachman called me to come to his office in Newark from Atlantic City. Upon my arrival he says, “George, I’ve got your orders here to go to inservice. I’m sure you have no burning desire to see the Director.” SAC’s at the time were afraid that some agent might say something, even inadvertently, to the Director which could cause the inspectors to descend on their field offices or worse. Hollstein: Uh-huh. George: I had already gotten on Mr. Bachman’s radar screen over trying to attend law school and this was another effort to deter me. I said, “Gee boss, I think I’d really like to see the Director.” He was a little gruff, and obviously displeased, but made no further effort to stop me. When our class at In-service was asked whether anyone wanted to see the Director, I raised my hand. At the appointed time, I proceeded to the Director’s office. Upon entering, we shook hands, and I said, “Mr. Hoover, I really have no problems and I really enjoy my work. I just wanted to come in and say hello.” With that he invited me to sit down. Now, Mr. Hoover was not a very tall guy. The seat of the chair beside his desk where he invited me to sit was only a few inches above the floor. One had to look almost straight up at Mr. Hoover, which I suspect was part of the ambiance. Hollstein: Is that right? Huh! George: So he talked about thirty minutes while I sat in silence, and nodded periodically. He spoke of the early days of the FBI, which was just fascinating. Mr. Hoover talked specifically about the Alvin Karpus gang, and the things that they had done. He talked about the arrests that he had personally been involved in. After my thirty minutes of allotted time was over, his secretary buzzed him. He stood up, and thanked me for coming in. We shook hands, and I left. My friends obtained a copy of Mr. Hoover’s write-up when it went into my personnel file “Today I saw Special Agent George of the Newark Office. He makes a good appearance and seems intensely interested in his work. He should be considered for administrative advancement.” At the time, having such a memo from the Director in my file would preclude some SAC from saying that I was not a splendid Agent. It was job security and future advancement potential, had I stayed. 26 W. Peyton George June 29, 2009 Page 27 Hollstein: Yeah. It was interesting how those things worked. I’ve heard this story many times and, and it, very often, did have an effect. You know, suddenly there were changes in opportunities and they became relief supervisors, or had interesting assignments, and what have you. So I guess it was worth it. George: I’ve heard the story of a SAC who went in to see Mr. Hoover. When he left he was so rattled that instead of going out the front door he walked into the closet and closed the door. (Laughing) Hollstein: (Laughing) George: And he waits there in the closet a few minutes. Finally, he opens the closet door, and Mr. Hoover says, “What kept you?” Hollstein: That’s another interesting story. I’d love to find the guy that actually was involved in that particular one. George: I am told that it was Ed Soucy, the SAC in Boston. Hollstein: You mentioned that you had some dealings after you left the Bureau with some of your people you were investigating? Many years later. George: Shortly after I left the FBI and Squad S-2, Oleg Kalugin went back to Russia. At the time we did not know about the Walker Spy Case. The powers that be mistakenly thought that Kalugin was being sent home because he was in some kind of trouble. Instead, it later turned out that he was actually going back to be rewarded and promoted for his work on that case. When he left DC for New York and on to Moscow, Robert W. (Bob) Feuer and other agents followed him and his family, looking for a place for an approach. When Kalugin stopped at the Howard Johnson’s on the New Jersey Turnpike for a coffee, Feuer got behind him in the coffee line. Feuer said, “Oleg (and whatever his middle name was), you don’t have to go back”. Kalugin turned around and said, “Oh, we are in the same business”. Of course the effort to defect him did not work for reasons we now know, but it was the first admission that he was KGB. For a small world story, same location, according to Feuer who died in 2003, after he retired from the Bureau, he and his wife were driving to New York on a personal trip. They stopped for lunch at the same Howard Johnson’s where he had approached Kalugin years earlier. 27 W. Peyton George June 29, 2009 Page 28 George: The people in the next booth were speaking Russian. Bob struck up a conversation with them. It turned out that one of the group was a Russian Orthodox Priest who had sheltered Kalugin at one point when the KGB was after him in Russia. Feuer gave him a message to take back to Oleg. Kalugin was the author of “The First Directorate: My 32 Years in Intelligence.” He had handled the Walker Spy Case which gave away our technology that allowed our submarines to run silently. This got him promoted in the KGB and sent back to Moscow. He eventually came back to DC after getting crossways with the KGB himself, and service as an elected member of the State Duma, or legislature. He went into the consulting business in partnership with a former staff director of the Senate Intelligence Committee. Committee Chairman, David Boren, a long time friend retired from the Senate to become President of the Oklahoma University. Our wives had been college roommates and I handled his personal legal work. At David’s going away reception in the Russell Senate Office Building, I spotted Kalugin in the crowd. I moved up beside him and in a low voice asked “Whatever happened to Viktor Kopytin? He turned to me, “Oh, you know Viktor?” He then told me where Viktor was at the time in Russia, and that Viktor had some undisclosed trouble, but that his wife’s family was well connected, and had gotten him out of it. Hollstein: Uhm-hmm. George: Some months later the Smithsonian was running a lecture series on the Cold War entitled “The Hammer and Sickle.” Most of the presenters were old former CIA Officials. However, Kalugin was the speaker for one evening to present the other side. I attended that evening. After his presentation I went up and introduced myself. I told him that I would love to get together with him, with some of the guys in the Washington Field Office, for lunch. He said, “Gee, I’d love to do that too.” So I called my friend Bob Feuer, who had been Kalugin’s Case Officer thirty years earlier, and the three of us went to lunch at the City Club in DC. We spent a fascinating two hours talking about different sides of the same cases, different perspectives, and so forth. 28 W. Peyton George June 29, 2009 Page 29 George: Back in the 1960s, we had an initiative called the “smile program”. Selected FBI agents would arrange to bump in to Soviets or “smile” at them at various places along their route and try to strike up a conversation or develop a relationship. Kalugin was Feuer’s target under this program so they had talked years earlier. Feuer wrote a memo of our discussion for the FBI and for our overall Supervisor, Court Jones. I will provide you a copy. Kalugin related to us a story of his days in Washington at the Embassy. Usually Soviets went back to Russia for vacation. One year he decided he wanted to stay in the US and to vacation in Florida. He got permission from both his government and the U. S. State Department to do so. He took off for Florida in his Green Volkswagen, we used to follow around, accompanied by his wife and I believe a daughter or granddaughter. Of course Agents followed him the entire route. At one point his car broke down just before he got to a motel. The agents on this “discrete surveillance” took them to the motel in the bureau car. When the Kalugin’s came out of the motel the next morning the Volkswagen was repaired and sitting in front. He said that he thought about writing Mr. Hoover a thank you letter but figured it would get the agents in trouble. Bob and I got a chuckle from this, as we knew that the Agents just wanted to get the guy out of their territory, and into the next field office division. He also told us about writing an eight page handwritten letter to Gorbachev telling him that if he did not get control of the KGB it would get control of him. Hollstein: Uhm-hmm. George: I had a photo taken of the three of us at the time. I gave Kalugin a copy. I also put one in the Grapevine in 1993. I used to get Christmas cards from him when I lived in Virginia. My wife and I have been to his house for dinner parties with the other guests, mostly retired CIA types. I lost track of him the past few years, except that I see him on the news from time to time. Cal Guymon, one of my X-Agent colleagues in Albuquerque, works in intelligence at Sandia Labs. He was back in DC a year ago for a training session with his job. Former KGB Major General Oleg Kalugin was one of the presenters. According to Guymon, when Kalugin started his presentation, he remarked that he had known a couple of guys that were in the FBI’s Washington Field Office. He indicated that one was Bob Feuer, and the other guy’s name temporarily escaped him. He then popped a slide up on the screen with the three of us in the photo that I had given him from our City Club lunch. 29 W. Peyton George June 29, 2009 Page 30 Hollstein: That made you instantly famous, huh. George: Only in Albuquerque. My friend did come back with a little different respect for his Chapter Secretary. Hollstein: So Kalugin has got to be a man of considerable age now, isn’t he? George: How old would he be? Hollstein: Yeah. Just roughly. George: He has to be close to 75 by now. I see him on TV from time to time. He has just written another book. Hollstein: So that’s good. You left the Bureau in 1969 and where did you go from there? George: I became Executive Assistant to the Administrator of the Farmer Home Administration in the Department of Agriculture. I went from a GS-12 FBI Agent to a GS-15 bureaucrat in another agency in one day, which impressed the guys on the squad. This lending Agency had six thousand employees and a three billion dollar budget. I was in that job about six months before moving over to the Office of the Secretary. There, I served as a Congressional Liaison Officer on the Cabinet Secretary’s personal staff, first for Secretary Clifford Hardin and next for Secretary Earl Butz when Hardin left to head Ralston Purina. This was a great job handling the Department’s relations with Congress. I had spent much of the previous four years learning the workings of Capitol Hill via a Soviet KGB Political Branch Agent as he made the rounds there. During the 1972 Presidential Campaign I was an advanceman for surrogate Presidential Candidate Earl Butz, and thereafter spent a year in the General Counsel’s office at USDA before entering private law practice in 1973. Hollstein: Well, there is life after the, after that life, huh? George: Yes, the opportunity to serve in J. Edgar Hoover’s FBI was my big break in life. It opened doors and exposed me to a world I would have never known existed. I was most fortunate to work on good cases for outstanding SACs, Assistant Directors and Supervisors, and with outstanding, dedicated agents and administrative staff. 30 W. Peyton George June 29, 2009 Page 31 Others: Here is a “FBI related” story that you can use or discard which I provided in October to those of us who attended a reunion of former Butz staffers at the Capitol Hill Club in DC. Former Secretary of Agriculture, and former Dean of Purdue University, Earl Butz died last year at age 96. During the 1972 Presidential Campaign Nixon was doing things in China, and rarely campaigned for re-election. Instead, he had his Cabinet Secretaries on the campaign trail as Surrogate Candidates. Butz was a dynamic public speaker and sought after particularly by those other candidates running for office, for their events. Our mission was to turn around the farm belt states in support of the President. I was one of four Advance men for Butz. We advance men “leap frogged” one another to our next event as soon as we finished the last one. Our goal was to make the 6:00PM news and the 10:00PM news, and to be above the fold in every newspaper. I had a letter in my pocket signed by former Attorney General John Mitchell authorizing the advance man to cancel the event if it did not meet our standards and goals. We were in Albuquerque, NM in an effort to help Albuquerque City Councilman, Pete Dominici, in his successful U. S. Senate campaign. Our party consisted of Secretary Butz, Don Brock, his personal Assistant, the USDA- OIG Bodyguard, Jack Neese, and me, as the advance man for the event. We occupied a block of rooms at the Downtowner Hotel before an event that evening at the Albuquerque Convention center. Each of our adjacent individual rooms opened to an outside walkway. I had called a friend who was the Assistant Special Agent in Charge (ASAC) of the Albuquerque FBI Office at the time, to inquire where we might buy some Indian jewelry to take back to our respective spouses in Virginia, as we were on a relatively tight schedule. My friend volunteered that a number of his Agents worked on the Indian Reservations where the jewelry was made, and that his office kept some samples for purchase by visiting dignitaries from the Washington Headquarters. He volunteered to send an agent over with some of these trinkets for our consideration. 31 W. Peyton George June 29, 2009 Page 32 George: A short time later this FBI Agent knocked on Secretary Butz's door by mistake, instead of mine. The Secretary answered the door, whereupon the Agent flipped his credentials, and said "FBI, I've got the jewelry." And then walked right past the Secretary and dumped out a Seagram's Liquor cloth bag of turquoise and silver squash blossom necklaces, bracelets, and rings onto the Secretary's bed. Secretary Butz thought he was being framed, or else being set up, by the Democrats. I was summoned from three doors away to sort out the situation. Once matters were explained, we all had a big laugh. Thereafter, Don and I picked up a few of the jewelry items at wholesale, and the FBI Agent (who was quite embarrassed by having imposed on the Cabinet Member by mistake) put the remaining jewelry items back into the Seagram's bag and returned to his office. Some fifteen years later I attended a function in DC, also attended by Secretary Butz, and he was still quipping about the FBI and jewel thieves. And another: On Friday night in June, 1972, I was home for the weekend after several days on the campaign trail with Butz. My wife, Nancy, my two-year old son, Richard, and I planned to go to the Watergate concert on the waterfront by the Memorial Bridge where military bands used to perform. On the way to the event, and shortly before 8:00PM, we stopped at the Howard Johnson restaurant across from the Watergate complex to get my son an ice cream cone. My son and I went inside and I ordered the ice cream from the cashier. I noticed former FBI Agent and former CIA employee James N. McCord and others seated on the far side of the counters facing me. McCord hopped up, and came around to greet me. Two months earlier, as head of Security for the Committee to ReElect the President, he had tried to hire me as a bodyguard for Martha Mitchell. She was the wife of former Attorney General John Mitchell, currently head of the Committee to Re-Elect. She had liked the FBI agents who were around her when her husband was AG (including my NAC Counselor Dan Brandt). Whomever they hired had to be an FBI Agent in a certain age bracket. 32 W. Peyton George June 29, 2009 Page 33 George: They knew that I had worked on the LBJ Protection Detail. After several interviews with Mitchell’s staff, including Fred Larue, in which everyone agreed to my terms that I be given a lawyer position in the firm of Mitchell, Rose and Alexander, Mr. Mitchell finally turned it down, claiming that he already had too many attorneys in the firm working in the campaign, so I withdrew. McCord said. “You know what we want. Who would you recommend?” I told him to call Former FBI Agent Stephen B. King, who was working on the Senate Permanent Investigation Committee or Former FBI Agent Robert McKenna who was working on the House Investigations Committee. Both were friends from WFO. McCord had subsequently hired Steve King. McCord told me what a great job Steve was doing, and in fact he was currently at San Clemente with Mrs. Mitchell that evening. This turned out to be the night of the Watergate break-in. In hindsight the others involved were sitting with McCord. He came around to greet me so that I would not come to him. That got me an interview with the FBI, a page on my son and me concerning our experience at the Howard Johnson’s in the book “Secret Agenda” by Jim Hougan, and an interview by Len Colodny, and a mention in his book, “Silent Coup, the Removal of a President”. Apparently my son and I were the last ones to see the Watergate burglars who weren’t arrested with them. 33
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