The Billion Dollar Spy: A True Story of Cold War Espionage and Betrayal (34 page)

32.
Anne Applebaum,
Iron Curtain: The Crushing of Eastern Europe, 1944–1956
(New York: Doubleday, 2012), 64–87. Robarge, in “Cunning Passages,” says “by fixating on the Soviets,” Angleton “largely ignored” other adversaries, including the East German and Czech services.

33.
Haviland Smith, correspondence with author, June 5, 2013. Smith’s pioneering influence is also well described in Benjamin Weiser,
A Secret Life: The Polish Officer, His Covert Mission, and the Price He Paid to Save His Country
(New York: PublicAffairs, 2004), 74–78.

34.
David Forden, interview with author, Feb. 6, 2013.

35.
Bruce Berkowitz, “The Soviet Target—Highlights in the Intelligence Value of Gambit and Hexagon, 1963–1984,”
National Reconnaissance: Journal of the Discipline and Practice
, no. 2012-UI (Spring 2012): 110–12. Much of this innovation was in response to the lack of good human intelligence inside the Soviet Union. In 1954, President Eisenhower established a panel to study the possibility of surprise attack, headed by James Killian of MIT. The panel concluded, “We
must
find ways to increase the number of hard facts upon which our intelligence estimates are based, to provide better strategic warning … we recommend adoption of a vigorous program for the extensive use, in many intelligence procedures, of the most advanced knowledge in science and technology.” See National Security Policy, doc. 9, “Report by the Technological Capabilities Panel of the Science Advisory Committee,” Feb. 14, 1955, in
Foreign Relations of the United States, 1955–1957, Volume XIX
(Washington, D.C.: Government Printing Office, 1990).

36.
Martin L. Brabourne, “More on the Recruitment of Soviets,”
Studies in Intelligence
9 (Winter 1965): 39–60.

37.
Paul Redmond, “Espionage and Counterintelligence,” panel 3, at U.S. Intelligence and the End of the Cold War, a conference at the Bush School of Government and Public Service, Texas A&M University, College Station, Nov. 18–20, 1999.

38.
Jerrold M. Post, “The Anatomy of Treason,”
Studies in Intelligence
19, no. 2 (1975): 35–37. A later effort is by William Marbes, “Psychology of Treason,”
Studies in Intelligence
30, no. 2 (1986): 1–11.

39.
Milt Bearden and James Risen,
The Main Enemy: The Inside Story of the CIA’s Final Showdown with the KGB
(New York: Random House, 2003), 22–24, discusses the Gerber study and its conclusions.

40.
Ibid., 23–24. On Blee, see Weiser,
Secret Life
, 7–9.

41.
Wallace and Melton,
Spycraft
, 87–102.

42.
Ibid., 87–96. Wallace is the former director of the CIA’s Office of Technical Service.

1.
Martha Peterson,
The Widow Spy: My CIA Journey from the Jungles of Laos to Prison in Moscow
(Wilmington, N.C.: Red Canary Press, 2012). Also see Bob Fulton,
Reflections on a Life: From California to China
(Bloomington, Ind.: Authorhouse, 2008), 61.

2.
Martha Peterson, interview with author, Oct. 12, 2012, and
Widow Spy
.

3.
Fulton,
Reflections
, 72–76.

4.
Peterson,
Widow Spy
, 174, and interview.

5.
Robert Fulton, interview with author, May 12, 2012. The encounter at the gas station was January 12, 1977. Moscow station to headquarters, Jan. 13, 1977, 131150Z; Fulton,
Reflections
.

6.
Royden, “Tolkachev,” 5–33. This is an unclassified version of a larger, classified monograph about the case.

7.
Ibid., 6. Royden reports the CIA had several other operations planned in Moscow in the months ahead and did not want to jeopardize them; moreover, the new administration of President Jimmy Carter was preparing to send Secretary of State–designate Cyrus Vance to Moscow for arms control talks and did not want a spy dustup to interfere.

8.
Moscow station to headquarters, Feb. 18, 1977, 181010Z.

9.
Royden, “Tolkachev,” 6–7; Fulton,
Reflections
, 79.

10.
James M. Olson, interview with author, Nov. 2, 2012.

11.
Peterson,
Widow Spy
, 241–42
.

1.
After the arrests and Peterson’s expulsion, the CIA carried out an internal review of the Ogorodnik compromise and that of the agent caught a few months later. The CIA official Duane R. Clarridge, who participated in the internal review, says the panel concluded “the agents’ own actions had brought about their downfall.” See Clarridge,
A Spy for All Seasons: My Life in the CIA
(New York: Scribner, 1997), 167–68. Later, it was learned that Ogorodnik was betrayed by Karl Koecher, a Czech man who came to the United States in 1965 with his wife, saying they were fleeing communism, but who was actually working for the Czech intelligence service and the KGB. Koecher attended Columbia University and obtained a job translating for the CIA. As part of his contract, he was given transcripts from telephone taps to translate. Some of the calls he translated pointed to a Soviet diplomat in Bogotá as a source for the CIA. This information led the KGB on a hunt that eventually pointed to Ogorodnik, who was probably arrested in the early summer, before Peterson was ambushed at the bridge. See Peterson,
Widow Spy
, 241. Koecher was arrested in 1984 and, with his wife, was included in a nine-person prisoner swap with the Soviet Union in 1986 that brought the release of the dissident Anatoly Shcharansky. Koecher received a life sentence that was reduced to time served on the condition he participate in the swap and never return to the United States.

2.
John T. Mason Jr.,
The Reminiscences of Admiral Stansfield Turner, U.S. Navy (Retired)
(Annapolis, Md.: U.S. Naval Institute, 2011). This is a set of twenty oral history interviews with Turner, courtesy the U.S. Naval Institute.

3.
Loch K. Johnson,
A Season of Inquiry: Congress and Intelligence
(Chicago: Dorsey Press, 1988).

4.
John Raneleagh,
The Agency: The Rise and Decline of the CIA
(New York: Simon & Schuster, 1987), 234, reports that Carter had asked General Bernard Rogers, but he declined and suggested Turner.

5.
Stansfield Turner, address to the U.S. Naval Academy Class of 1947, Nov. 13, 1980, Washington, D.C. Also see Stansfield Turner,
Secrecy and Democracy: The CIA in Transition
(Boston: Houghton Mifflin, 1985), 15, and Mason,
Reminiscences
, 744–48. On Carter’s mind-set, see Raneleagh,
Agency
, 634–35.

6.
For details of the satellite programs, see F. C. E. Oder, J. C. Fitzpatrick, and P. E. Worthman,
The Gambit Story
(Chantilly, Va.: Center for the Study of National Reconnaissance, 2012), and R. J. Chester,
A History of the Hexagon Program: The Perkin-Elmer Involvement
(Chantilly, Va.: Center for the Study of National Reconnaissance, 2012). Also Stansfield Turner,
Burn Before Reading: Presidents, CIA Directors, and Secret Intelligence
(New York: Hyperion, 2005), 161.

7.
Turner’s insistence on this analytic approach to the military balance was highly unusual and triggered a major dispute in a 1980 intelligence estimate. See Gerald K. Haines and Robert E. Leggett,
Watching the Bear: Essays on CIA’s Analysis of the Soviet Union
(Washington, D.C.: Center for the Study of Intelligence, 2003), 169.

8.
Gates,
From the Shadows
, 138.

9.
A month after taking office, Turner asked Williams to carry out a “thorough review” of how the espionage branch was operating. Turner recalls that Williams reported back that it was operating ethically and soundly, which he shared with Carter. Turner,
Secrecy and Democracy
, 197. But Williams was viewed with suspicion for his questions about personal behavior, CIA officials told the author. Williams had worked at the Naval War College with Turner.

10.
Turner said, “Too many old-timers were hanging on.” The directorate had done its own study in 1976, calling for a cut of 1,350 positions over five years, but no action was taken by Bush. Turner eliminated 820 positions over two years, with 17 persons fired, 147 forced into early retirement, and the remainder leaving by attrition as people were moved elsewhere. The decision was made in August 1977, but notices were given on October 31, 1977, in what became known as the Halloween Massacre. An abrupt, two-paragraph letter was sent to the employees being cut, which Turner later acknowledged was “unconscionable.” Turner,
Secrecy and Democracy
, 195–205.

11.
Jack F. Matlock Jr., correspondence with author, Dec. 2, 2012; Dick Combs, interview with author, Sept. 27, 2013; James Schumaker, correspondence with author, Sept. 23, 2013, and blog post in “Personal Recollections of the Moscow Fire,” from
MoscowVeteran.org
. Schumaker was special assistant to the ambassador. Hathaway was decorated by the CIA with the Intelligence Star for his actions to protect the Moscow station.

12.
Bearden and Risen,
Main Enemy
, 26.

13.
Sandra Grimes and Jeanne Vertefeuille,
Circle of Treason: A CIA Account of Traitor Aldrich Ames and the Men He Betrayed
(Annapolis, Md.: Naval Institute Press, 2012), 59. The authors were both longtime staff members in the CIA’s Soviet division.

14.
Gardner “Gus” Hathaway, interview with author, June 10, 2011.

15.
The Kulak case had a complex history involving both the FBI and the CIA. Under J. Edgar Hoover, the FBI regarded him as an authentic agent, while the CIA was skeptical, driven by Angleton’s doubts. These positions changed after Angleton was removed and Hoover died. The FBI began to doubt whether Kulak could be trusted. The suspicions stemmed from vague comments he made on a phone call between New York and Washington, on a Soviet phone line that had been tapped by the FBI, according to a source with direct knowledge. Meanwhile, the CIA conducted a study of the case and concluded that Kulak was genuine and could be run in Moscow. Grimes was one of those who carried out the study. See Grimes and Vertefeuille,
Circle of Treason
, 55–57.

16.
Ibid., 55–61.

17.
“Foxbat/Lt. Belenko Update,” Oct. 12, 1976, released to author under FOIA, Air Combat Command, Department of the Air Force, Aug. 25, 2014; Pacific Air Forces, “History of the 475th Air Base Wing, CHO (AR) 7101, Vol. III, 1 July–31 Dec. 1976,” 316, released to author under FOIA, June 12, 2014.

18.
Hathaway, interview with author, June 10, 2011.

19.
“Evaluation of Information Provided by
cksphere
,” memo, CIA, Dec. 29, 1977.

20.
Moscow station to headquarters, Jan. 3, 1978, 031450Z.

21.
Ibid.

22.
“Memorandum for: Director of Central Intelligence,” CIA, Jan. 3, 1978.

1.
Hathaway, interview with author, June 10, 2011.

2.
Royden, “Tolkachev,” 8.

3.
Moscow station to headquarters, March 2, 1978, 021500Z. This cable, a translation of Tolkachev’s note, refers to the “faculty” in Kharkov but more precisely means the “department,” which I have substituted.

4.
Royden, “Tolkachev,” 8.

5.
Nina Guilsher Soldatenov, “Our Family History,” unpublished, courtesy Catherine Guilsher, April 5, 2013.

6.
Catherine Guilsher, interviews with author, March 30, 2011, and April 5, 2013.

7.
President Ronald Reagan approved Operation GUNMAN in February 1984 to remove the bugged machines, and it was carried out by the National Security Agency. See Sharon Maneki, “Learning from the Enemy: The GUNMAN Project,”
United States Cryptologic History, Series VI
, vol. 13, Center for Cryptologic History, National Security Agency, 2009. The bugged typewriters were in use by diplomats, not in the Moscow station, according to two CIA sources.

8.
It was common to call Galina a colonel, but a source told the author that, while an informer, she probably did not hold the KGB rank.

9.
Catherine Guilsher, interview with author, March 30, 2011.

10.
Moscow station to headquarters, March 6, 1978, 060835Z. Guilsher’s cable, sent the next morning, reconstructed the call.

11.
The book that prompted the alarm was Edward Jay Epstein,
Legend: The Secret World of Lee Harvey Oswald
(New York: Reader’s Digest Press, 1978), 20, 263. The leak is described in Grimes and Vertefeuille,
Circle of Treason
, 61.

12.
Hathaway, interview with author, Aug. 28, 2013; Grimes and Vertefeuille,
Circle of Treason
, 60–62. Kulak was not discovered and later died of a heart attack.

13.
Hathaway, interview with author, Aug. 28, 2013; Royden, “Tolkachev,” 9.

14.
Moscow station to headquarters, March 21, 1978, 210817Z.

15.
Moscow station to headquarters, March 21, 1978, 211350Z.

16.
Headquarters to Moscow station, March 24, 1978, 242036Z.

17.
Moscow station to headquarters, April 11, 1978, 111215Z.

18.
Royden, “Tolkachev,” 10.

19.
Headquarters to Moscow station, May 17, 1978, 170214Z.