DATE=  10/6/97

TYPE=CORRESPONDENT REPORT

NUMBER=2-220901

TITLE=U-S SPIES (L)

BYLINE=JIM MALONE

DATELINE=WASHINGTON

CONTENT=

VOICED AT: 



INTRO:   ECHOES OF THE COLD WAR HERE IN WASHINGTON MONDAY AS 

THREE AMERICAN CITIZENS WERE CHARGED WITH ESPIONAGE ON BEHALF OF 

THE FORMER EAST GERMANY. U-S LAW ENFORCMENT OFFICIALS DESCRIBE 

THE THREE SUSPECTED SPIES AS COMMITTED COMMUNISTS WHO KEPT TRYING

TO SELL U-S SECRETS EVEN AFTER THE FALL OF THE BERLIN WALL. V-O-A

CORRESPONDENT JIM MALONE HAS THE STORY.



TEXT:   THE THREE ACCUSED SPIES HAVE BEEN CHARGED WITH CONSPIRACY

TO COMMIT ESPIONAGE. THEY WERE ARRESTED OVER THE WEEKEND HERE IN 

WASHINGTON AS PART OF AN EXTENSIVE F-B-I STING OPERATION.



THOSE ARRESTED INCLUDE FORMER DEFENSE DEPARTMENT OFFICIAL THERESA

SQUILLACOTE, HER HUSBAND, LABOR UNION OFFICIAL ALAN STAND AND 

PRIVATE INVESTIGATOR JAMES CLARK.



THE F-B-I SAYS ALL THREE BECAME SPIES FOR EAST GERMANY AT THE 

HEIGHT OF THE COLD WAR. THEY LATER TRIED TO SELL INFORMATION TO 

THE FORMER SOVIET UNION, THE RUSSIAN FEDERATION AND THE REPUBLIC 

OF SOUTH AFRICA.



THEY WERE ARRESTED ON SATURDAY AFTER PASSING CLASSIFIED 

INFORMATION TO UNDERCOVER F-B-I AGENTS POSING AS INTELLIGENCE 

AGENTS FROM SOUTH AFRICA.



HELEN FAHEY IS THE U-S ATTORNEY IN ALEXANDRIA, VIRGINIA, JUST 

OUTSIDE WASHINGTON, WHERE THE THREE APPEARED IN COURT ON MONDAY. 



                       /// FAHEY ACT. ///



         (ALLEN) STAND BECAME AN AGENT OF THE FOREIGN 

         INTELLIGENCE SERVICE OF EAST GERMANY IN APPROXIMATELY 

         1972. HE RECRUITED (JAMES) CLARK IN 1976 AND (THERESA, 

         HIS WIFE) SQUILLACOTE BETWEEN 1979 AND 1981. CLARK, 

         STAND AND SQUILLACOTE REMAINED AGENTS OF EAST GERMANY 

         UNTIL THE COUNTRY WAS UNIFIED WITH WEST GERMANY IN 

         OCTOBER OF 1990. AND THEN THEY SUPPORTED THEIR EAST 

         GERMAN HANDLER'S EFFORT TO ESTABLISH A NEW ESPIONAGE 

         RELATIONSHIP WITH THE SOVIET UNION AND THEN WITH THE 

         RUSSIAN FEDERATION.



                        /// END ACT. ///



THE F-B-I SAYS IT HAD HELP FROM SOME FORMER EAST GERMAN 

INTELLIGENCE AGENTS IN GATHERING EVIDENCE AGAINST THE ACCUSED 

TRIO. OFFICIALS SAY THERESA SQUILLACOTE, WHO USED TO WORK AT THE 

PENTAGON, RECENTLY SOUGHT A JOB AT THE WHITE HOUSE AS A STEPPING 

STONE TO WHAT SHE HOPED WOULD BE A POSITION AT THE NATIONAL 

SECURITY COUNCIL.



F-B-I AGENT THOMAS PICARD DESCRIBES ALL THREE OF THE ACCUSED AS 

COMMITTED COMMUNISTS WHO MET AS COLLEGE STUDENTS AT THE 

UNIVERSITY OF WISCONSIN IN THE EARLY 1970'S. 



                       /// PICARD ACT. ///



         THEY LOOKED TO OTHER COUNTRIES TO SELL THEIR ALLEGIANCE 

         TO. THEY WANTED TO SELL THEIR EXPERTISE IN DOCUMENT 

         PHOTOGRAPHY, RADIO MESSAGES AND THE SMUGGLING OF 

         INFORMATION OUTSIDE OF THE UNITED STATES. FIRST, THEY 

         TRIED TO SELL IT TO RUSSIA. THEN TO SOUTH AFRICA. BUT 

         FINALLY, THEY WERE SUCCESSFUL IN SELLING THEIR SECRETS 

         TO AN UNDERCOVER AGENT OF THE F-B-I.



                        /// END ACT. ///



ALL THREE APPEARED IN COURT MONDAY AND WERE HELD ORDERED WITHOUT 

BAIL UNTIL THEIR NEXT COURT APPEARANCE ON THURSDAY WHEN IT IS 

EXPECTED THAT LAWYERS WILL BE APPOINTED TO REPRESENT THEM. 



IF CONVICTED OF THE ESPIONAGE CHARGES, THEY FACE A MAXIMUM 

PENALTY OF LIFE IN PRISON OR POSSIBLY EVEN THE DEATH PENALTY IF 

CERTAIN CRITERIA UNDER THE LAW ARE MET. (SIGNED)



NEB/JBM/WFR











06-Oct-97 3:32 PM EDT (1932 UTC)

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Source: Voice of America

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