Daily Nebraskan Monday, December 1, 1986 News Digest By The Associated Press Page 2 Spy defense Reagan orders counterintelligence overhaul WASHINGTON President Reagan is secretly imple menting a sweeping overhaul of the nation's defenses against foreign spjes that calls for more than 100 security changes from the doors of defense plants to communica tions satellites in space, White House and congressional officials say. The changes will affect people as well as hardware. The 4.2 million Americans with access to secret data will face tougher and more frequent background investigations. New restrictions may be placed on the ability of Soviet bloc diplomats to buy computers and telecommunications equipment on the open market in this country. Most of the changes are described in a 50-page, secret report sent earlier this month to the House and Senate intelligence committees. The White House official said the report outlines 40 new proposals and improvements or increases in more than 60 other areas. Some have been implemented; others soon will be; a few require legislation. "The president's plan is an unprecedented blueprint for broad-based reform of U.S. efforts to counter the Soviet bloc intelligence threat. It is a classic example of how the National Security Council process ought to work in the national interest," a Senate Intelligence Committee spokes man said. The White House official said that among the principal moves outlined in the report or under consideration in the administration were: A promised executive order next year establishing the first government-wide minimum standards for back ground investigations of federal and contractor employees before they. are cleared to see classified information. O A directive to the Defense Department to implement to the full extent possible proposals to station Defense Investigative Service agents permanently inside large defense plants and to provide monetary or administrative penalties for contractors with security lapses and bonuses for those with tight programs. O More spending for communications security, "which is from the Walker case directly," because that ring allowed the Soviets to decode a million Navy messages. O Additional research on technical ways to safeguard secrets stored in computers. Computer experts also are targeted for more stringent security investigations "because sooner or later we'll come across a spy case involving computer theft of secrets." O Legislation to provide the death penalty for espion age and provide special secrecy for technical information with space applicat ions, like that now accorded to nuclear information. That proposal comes as the administration steps up research on a space-based missile defense plan. O Development of a plan to regulate authorized leaks by government officials, known as background briefings in which officials speak to reporters, sometimes about classi fied data, on condition they not be named. "Backgrounders are a fact of life." the White House officials said. "We need a policy on them, but we are not trying to create a chilling effect on discussion of policy debates in t he government." m debate continues Senate leaders want panel to probe weapons deal WASHINGTON Senate Republican leader Bob Dole on Sunday urged President Reagan to convene a special session of Congress to appoint a Watergate-style commit tee to investigate secret White House arms sales to Iran and money transfers to Nicaraguan rebels. Dole, R-Kan., said he wants the president to "call a special session of Congress next week and form this select committee." Sen. Robert Byrd, the Democratic leader of the Senate who will assume Dole's post as majority leader when the new Senate comes in next year, also called for a select joint committee, but he said it "would have to wait until Congress reconvened" in January. One senior Justice Department official, who spoke on condition of anonymity, said Sunday he believes "the weight of the arguments now favor moving to an inde pendent counsel." But he did not believe that a decision had been made to take the probe out of the hands of Attorney General Edwin Meese III and other Justice officials. Byrd and Dole said they had discussed the proposal to name a special panel, which the Democratic leader said must be done by the full Congress "so that the committee would have all the powers of subpoena . . . which the two leaders themselves cannot give it." Dole, interviewed on ABC's "This Week with David Brinkley," said Con gress "ought to be called back to town next week," rather than waiting until it reconvenes with new members in Jan uary White House spokesman Dan How ard calkd Dole's proposal "a novel idea," but declined direct comment on it. "We simply haven't had the time to consider it," he said. "No one is more interested in getting to the bottom of this than the president, and he wants to do so quickly." Although Republicans will retain control of the Senate until the 100th Congress meets in January, Dole said a Democrat would probably be appointed to head any select committee. "We'd probably have to pattern it after the so-called Watergate commission," Dole said, referring to the con gressional panel whose televised hearings played a criti cal role in forcing the resignation of President Richard Nixon in 1974. No president has summoned a special session of Con gress since Harry Truman called lawmakers back to Washington in 1948 to deal with labor disputes, said Dole. Bryd said a special counsel should be appointed to investigate disclosures that a White House aide, Lt. Col. Oliver North, arranged for up to $30 million in proceeds from the secret sale of arms to Iran to be channeled to help Cont ra rebels fighting Nicaragua's leftist Sandinista government. The revelations announced by Meese last week forced the removal of North and resignation of national security adviser Vice. Adm. John Poindexter. Both the Senate and House intelligence committees have already started their own investigations of the Iran and Nicaraguan transactions, and lawmakers are calling for judiciary, armed services and foreign affairs commit tees to follow suit, creating the prospect of more than a dozen congressional investigations on Capitol Hill. , r- r' J h v O !. I J 1 s) i 'Ah' n c: i - A: .,J Official says Iran profits used for Contra air force WASHINGTON A fired White House aide apparently used profits from Iranian arms sales to build a small, American-manned air force that delivered weapons to Nicaraguan Contra rebels this year, according to U.S. government officials and documents from the operation. Lt. Col. Oliver L. North, fired last week for his role in diverting as much as $30 million through Swiss bank accounts, had managed a broader Contra aid network for two years with President Reagan's approval despite a congressional ban on U.S. military aid to the rebels, White House officials have said. Although that assistance enabled the Contras to con tinue fighting, the rebels still had trouble resupplying troops operating inside Nicaragua. One government source said Sunday that problems may have led North to create an air resupply wing for the Contras and turn to money from the Iranian arms sales to pay for it. In explaining North's firing from the National Security Council staff last Tuesday, Attorney General Edwin Meese III said only North "knew precisely" about the Iran-Contra connection and his boss, national security adviser John Poindexter, who resigned, "did know that something of this nature was occurring." But congressional investigators have begun examining how an operation as large as the Contra air resupply mis sion, based at El Salvador's Ilopango mililtary airport in clear view of U.S. military advisers, could have been funded from Iranian arms sales without Reagan and other top officials knowing. U.S. government officials, familiar with the North operation but insisting on anonymity, said that although the Iranian-Contra link was a closely held secret inside the White House, North's management of the air operation was known to officials in the State Depart ment, Pentagon, CIA and the NSC. "Everyone knew something was going on down there and that Ollie (North) was doing it," one official said. The air operation came to light Oct. 5 when an American-manned C-l 23K cargo plane was shot down over southern Nicaragua while flying guns to the Contras. Documents recovered from the plane and interviews with principals show that the Ilopango operation was a major resupply effort, involving more than 100 flights dating back to early 1986. Reagan secretly authorized U.S. arms sales to Iran in January. Another key figure in both the Iranian arms sales and the Contra resupply opertion was retired Air Force Major Gen. Richard V. Secord, a former top Pentagon offical on the Middle East. One administration offical said Secord served as North's "right hand man" in handling the Contra and Iranian operations. Salvadoran telephone records from the safe houses used by the Air Technology Trading Corp., a Vienna, Va., firm run by Secord, and to North's private lines at the White House. Secord has denied involvement with the air resupply network, but neither he nor his attorney could be reached for comment Sunday. In Brief Byrd wants SALT II treaty enforced WASHINGTON Senate Democratic leader Robert Byrd suggested Sunday that Congress could force President Reagan to comply with the unratified SALT II treaty by voting to drydock and dismantle a Poseidon submarine. Byrd, interviewed on CBS-TV's "Face the Nation," said, however, he hoped Reagan would take the action himself and said he opposed a move that might make it appear Congress was trying to approve the treaty without the required two-thirds vote. The United States on Friday violated the 1979 nuclear arms agreement with the Soviets when the 13 1st Air Force B-52 bomber capable of carrying atomic-tipped cruise missiles went into operation. If the Navy had retired a Poseidon missile-firing submmarine, the U.S.-Soviet agreement would not have been breached. The treaty permits on 130 cruise-equipped bombers unless an atomic weapon is eliminated from the U.S. arsenal for each additional bomber. "I am sorry that they are breaking through the ceiling," Byrd said. "I would urge the president still take compensatory action to keep the country with the ceiling." "Of course," he added, "Congress could take specific action to drydock and dismantle an aging Poseidon submarine." Byrd of West Virginia said, however, he would not support "blanket action which could be construed as approving a treaty by a majority vote when the Constitution says it has to be done by a two-thirds vote." Although the treaty was never ratified by the Senate, the Reagan administration until Friday had followed a policy of abiding by the treaty's limits. Reagan's action brought sharp criticism from Democrats in Congress, from U.S. allies in Europe and from Soviet leader Mikhail S. Gorbachev. Aquino: Marcos not the last to pay for underestimating me MANILA, Philippines President Corazon Aquino said Sunday the men who doubt her ability to govern are just big talkers and called her predecessor, Ferdinand E. Marcos, "not the last to pay" for underestimating her. Aquino told the women's club of the Asian Development Bank, "It has often been said that Marcos was the first male chauvinsit to underestimate me. He was not the last to pay for that mistake." She called others who have chal lenged her in recent weeks "a crop of garrulous men with better and brighter ideas on how to run my government. . . . I would like to think that I have man aged to have the last word and the last task of having to put things back in order after these men were finished." A week ago, Aquino demanded resig nations from all Cabinet ministers after word that a planned coup by officers close to Defense Minister Juan Ponce Enriie has been foiled. She immediately replaced Enriie and has accepted other resignations since then. The meeting was closed to news media, but the text of her speech was made available to reporters. In other developments: OThe Communist Party said that Gary Grant dies of stroke at 82 LOS ANGELES - Cary Grant, whose masculine elegance and darkly hand some features made him an unrivaled star of both sophisticated comedy and chilling intrigue for more than 30 years, has died of a massive stroke at the age of 82. The debonair leading man with the dimpled chin and clipped accent died at 1 1:22 p.m. CST Saturday at St. Luke's Hospital in Davenport, Iowa, where he was to appear in a 90-minute program that included a talk and clips from his movies. His fifth wife, Barbara, was at his side, hospital officials said. "There was nothing that could be done. There's no intervention when something like this happens," said James Gilson, a cardiologist who treated him. His body reportedly was returned early Sunday to California. There was no immediate word on funeral plans. President Reagan, himself a former movie actor, called Grant a longtime friend. "He was one of the brightest stars in Hollywood and his elegance, wit and charm will endure forever on film and in our hearts," the president said. 1 I despite a cease-fire agreement with the government, "revolutionary armed strug gle" remains its main goal, and the armed forces chief called on his troops to remain vigilant durng the truce. Police stopped about 3,000 leftists en route to the presidential palace to demand justice in the slaying of their leader, Rolando Olalia. 010,000 Aquino supporters rallied to urge adoption of a proposed con constitution. At Manila's Rizal Park, about 10,000 supporters of Aquino urged voters to approve the new constitution in a Feb. 2 plebiscite. The constitution would extend the president's term until 1992. Nebraskan Jell Korbelik 472-1766 Gene Gentrup Tammy Kaup Linda Hartmann Kurt Eberhardt James Rogers Todd von Kampen Scott Thien Joan Rezac Chuck Green Scott Harrah Andrea Hoy Geoll Goodwin Jeanne Bourne Tom Lauder Charles Lieurance Daniel Shattil Katherine Policky Lesley Larson Bryan Peterson Kelly Wirges Harrison Scliultz. 474-7660 Don Walton. 473-7301 The Daily Nebraskan (USPS 144-080) is published by the UNL Publications Board Monday through Friday in the fall and spring semesters and Tuesdays and Fridays in the summer sessions, except during vacations. Readers are encouraged to submit story ideas and comments to the Daily Nebraskan by phoning 472-1763 between 9 a.m. and 5 p m. Monday through Friday. Subscription once is S35 for one year. Postmaster: Send address chanqes to the Daily Nebraskan. Nebraska Union 34. 1400 R St.. Lincoln. Neb 68588-0448. Second-class postage paid at Lincoln. NE. All MATERIAL COPYRIGHT 1986 DAILY NEBRASKAN Editor Managing Editor Assoc. News Editors Graphics Editor Editorial Page Editor Editorial Page Asst. Wire Editor Copy Desk Chief Sports Editor Arts & Entertain ment Editor Photo Chief Night News Editors Art Director Diversions Editor General Manager Production Manager Advertising Manager Student Advertising Manager Creative Director Publications Board Chairman Professional Adviser