CIS Microfiche Library 1970-2002 (CIS Asia Pacific Collection)

 CIS NO: 78-H741-2
 TITLE: Korean Influence Investigation, Part 2.
 SOURCE: Committee on Standards of Official Conduct. House
 DOC TYPE: Hearing                   COLLATION: ii+1157 p.
 DATE: Apr. 3-5, 10, 11, 1978
 CONGRESS-SESSION: 95-2              SUDOC: Y4.St2/3:K84/pt.2
 ITEM NO: 1025-B
 LC CARD NO: 77-604905               MC ENTRY NO: 78-22562

 Continuation of hearings to determine whether Members of the House of
 Representatives, their immediate families, or associates accepted anything
 of value, directly or indirectly, from the Government of Korea.
   This volume examines alleged influence attempts by Tongsun Park, Korean
 businessman residing in the U.S. in the late 1960's and early 1970's. Park
 is charged with enlisting the aid of Congressmen in convincing the Korean
 Central Intelligence Agency (KCIA) to appoint him exclusive agent in the
 Korean Government purchase of rice from American sellers, and allegedly
 using "commissions" from rice sales for cash payments to Congressmen to
 create a more favorable atmosphere for South Korean interests.
   Some Congressmen charged with accepting gifts from Park represented
 rice-producing States and held key positions on foreign aid subcoms,
 including former Rep. Otto E. Passman (D-La), then Chairman of the
 Appropriations Committee Subcom on Foreign Operations.
   The following members of the Special Staff conduct initial examination of
 witnesses:
 a. Leon Jaworski, Special Counsel.
 b. John W. Nields, Jr., Chief Counsel.
 c. David H. Belkin, Deputy Chief Counsel.
 d. Jeffrey Harris, Deputy Chief Counsel.
 e. Thomas M. Fortuin, Counsel.
 f. Barbara A. Rowan, Counsel.
 g. Martha Talley, Counsel.
 Some witnesses have been granted immunity in exchange for testimony.
   Includes text (p. 2-8) of H. Res. 252, authorizing investigation.
   Committee investigation exhibit materials (p. 383-1157) contain
 correspondence, diary excerpts, financial records, and cancelled checks,
 including excerpts from records maintained by Tongsun Park, and "TS Report,"
 Korean language document and English translation of analysis and evaluation
 of Park's activities (p. 668-704).
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS (and special content notations): CORRUPTION AND BRIBERY;
     PASSMAN, OTTO E.; RICE (Sales commission payments by US rice cos to
     Korean businessman Tongsun Park); BUSINESS ETHICS (Sales commission
     payments by US rice cos to Korean businessman Tongsun Park); JAWORSKI,
     LEON; NIELDS, JOHN W., JR.; BELKIN, DAVID H.; HARRIS, JEFFREY;
     FORTUIN, THOMAS M.; ROWAN, BARBARA A.; TALLEY, MARTHA; KOREA;
     KOREAN CENTRAL INTELLIGENCE AGENCY
 BILLS: 95 H.Res.252

 78-H741-2 TESTIMONY NO: 1          Apr. 3, 4, 1978 p. 11-147
 WITNESSES:
     PARK, TONGSUN
 STATEMENT AND DISCUSSION: Summary of relations with and payments to
     various Congressmen; reasons for and means of enlisting congressional
     support in gaining reinstatement as Korean rice agent; confirmation of
     and rationale for Park plan for Korea purchase of products from
     congressional constituencies, returning funds as campaign contributions.
     (p. 11-75)
       Detailed examination of ledger entries regarding payments to various
     Congressmen or family or staff members, including changes in payment
     methods after 1974 law forbidding campaign contributions by foreign
     nationals; clarification of circumstances surrounding 1971-72 meetings
     with Defense Secretary Melvin R. Laird and arrangement for Korean
     Government officials' participation; insistence that lobbying and
     payments were not carried out by him as Korean Government agent. (p.
     77-147)
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS: LAIRD, MELVIN R.

 78-H741-2 TESTIMONY NO: 2          Apr. 5, 1978 p. 180-183
 WITNESSES (and witness notations):
     SCHANDLER, HERBERT Y. (natl def specialist, CRS)
 DISCUSSION: Explanation of executive branch and congressional jurisdiction
     over military assistance program.
 CONTENT NOTATION: Foreign Military Assistance Program, congressional-exec
     jurisdictions
 DESCRIPTORS: CONGRESSIONAL RESEARCH SERVICE; SEPARATION OF POWERS;
     MILITARY.ASSISTANCE

 78-H741-2 TESTIMONY NO: 3          Apr. 5, 1978 p. 183-218
 WITNESSES (and witness notations):
     DORE, GORDON (pres, Supreme Rice Mill)
 STATEMENT AND DISCUSSION: Explanation of financial transactions with Park
     and Passman; reasons for and scope of participation in Southeast Asia
     trips with congressional delegation, including membership on Overseas
     Private Investment Corp. Advisory Council; clarification of interest in
     St. John's Maritime Co., an American company which received agricultural
     shipping contracts after Passman intervention.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS (and special content notations):
     CONGRESSIONAL.STUDY.MISSION.REPORTS (Korean payments to US Congressmen
     investigation, congressional delegation Southeast Asia trips); OVERSEAS
     PRIVATE INVESTMENT CORP.; SUPREME RICE MILL; ST. JOHN'S MARITIME CO.

 78-H741-2 TESTIMONY NO: 4          Apr. 5, 1978 p. 218-228
 WITNESSES (and witness notations):
     FLETCHER, BARBARA M. (former Staff Member to Rep Nick Galifianakis)
 STATEMENT AND DISCUSSION: Personal role in delivering funds from Park to
     former Congressman Galifianakis.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS: GALIFIANAKIS, NICK

 78-H741-2 TESTIMONY NO: 5          Apr. 10, 1978 p. 229-270
 WITNESSES (and witness notations):
     HANNA, RICHARD T. (former Rep (D-Calif))
 STATEMENT AND DISCUSSION: Description of relationship with Park, including
     intervention with KCIA officials to promote Park appointment as rice
     agent; account of circumstances surrounding receipt of funds from Park,
     including share of rice commissions; summary of personal efforts to
     promote Korean interests in Congress.
       Confirmation of guilty plea following Justice Dept indictment for
     bribery; denial of knowledge that Park was Korean Government agent.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS (and special content notations): DEPARTMENT.OF.JUSTICE
     (Korean payments to US Congressmen, indictment of former Rep Hanna)

 78-H741-2 TESTIMONY NO: 6          Apr. 11, 1978 p. 303-331
 WITNESSES (and witness notations):
     RICHBOURG, DONALD (Staff Dir, Subcom on Foreign Ops, House Approp
        Committee)
 STATEMENT AND DISCUSSION: Details of AID-funded trips to Southeast Asia
     with congressional delegation, including knowledge of Passman visits
     with KCIA officials and scope of Park participation.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS: AGENCY FOR INTERNATIONAL DEVELOPMENT

 78-H741-2 TESTIMONY NO: 7          Apr. 11, 1978 p. 331-350
 WITNESSES (and witness notations):
     BUCKNAM, ROBERT B. (Investigator, Committee Spec Staff)
 STATEMENT AND DISCUSSION: Review of committee exhibits documenting Park
     influence and Passman intervention in rice and shipping transactions;
     summary of Passman financial transactions, suggesting income source
     other than salary.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS: MERCHANT MARINE

 78-H741-2 TESTIMONY NO: 8          Apr. 10, 1978 p. 351-366
 WITNESSES (and witness notations):
     PANOS, NICHOLAS (Spec Agent, Office of Inspector Gen, USDA)
 STATEMENT AND DISCUSSION: Charged efforts by Passman to influence P.L. 480
     shipping contract by linking Korean aid appropriation to award to St.
     John's Maritime Co.; grounds for and development of extortion case
     against Passman, including investigation impediments.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS: DEPARTMENT.OF.AGRICULTURE; PUBLIC LAW 480; MERCHANT MARINE;
     ST. JOHN'S MARITIME CO.

 78-H741-2 TESTIMONY NO: 9          Apr. 11, 1978 p. 366-381
 WITNESSES (and witness notations):
     ELKO, STEPHEN B. (former Administrative Asst to Rep Daniel J Flood
        (D-Pa))
 STATEMENT AND DISCUSSION: Description of personal role in delivering funds
     from Dr. Murdock Head (exec dir, Airlie Fdn) to Passman and Passman
     efforts to obtain funding for foundation project in AID appropriation.
 CONTENT NOTATION: Airlie Fdn payments to US Congressmen
 DESCRIPTORS (and special content notations): AGENCY FOR INTERNATIONAL
     DEVELOPMENT; AIRLIE FOUNDATION (Payments to US Congressmen); HEAD,
     MURDOCK

 78-H741-2 TESTIMONY NO: 10         Park's Former Employees
 WITNESSES (and witness notations):
     LEE, BONG YANG (p. 148-155)
     RYU, JAY SHIN (both former employees of Tongsun Park, p. 157-180)
 STATEMENTS AND DISCUSSION: Observations of and participation in Park's
     Washington activities, including knowledge of Park's contacts with KCIA
     officials.
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation

 78-H741-2 TESTIMONY NO: 11         Former AID Officials
 WITNESSES (and witness notations):
     HANNAH, JOHN A. (former Administrator, AID, p. 270-280)
     PARKER, DANIEL (former Administrator, AID, p. 280-290)
     HEDGES, IRWIN R. (former Coord, Office of Food for Peace (PL 480),
        AID, p. 291-302)
 STATEMENTS AND DISCUSSION: Recollections concerning Passman's interest in
     Korean rice transactions, including attempts to influence P.L. 480
     policy; review of circumstances surrounding arrangement of development
     loan funds to Korea for rice imports (Hannah).
 CONTENT NOTATION: Korean payments to US Congressmen, congressional
     investigation
 DESCRIPTORS: AGENCY FOR INTERNATIONAL DEVELOPMENT; PUBLIC LAW 480;
     FOREIGN.LOANS