DATE=4/16/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-229794
TITLE=U-S SPY HEARING (S & L)
BYLINE=DAVID SWAN
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 

INTRO:  A U-S (FEDERAL) JUDGE HAS DENIED BAIL FOR A FIRED 
INTELLIGENCE AGENT ACCUSED OF SPYING FOR TWO FOREIGN COUNTRIES. 
V-O-A'S DAVID SWAN REPORTS, THE SUSPECT IS ALSO ACCUSED OF TRYING
TO EXTORT MONEY FROM THE C-I-A.

TEXT:  THE JUDGE ACCEPTED THE GOVERNMENT'S CLAIM THAT DOUGLAS 
GROAT IS LIKELY TO FLEE IF RELEASED ON BOND - AND HIS ESCAPE 
COULD MEAN GRAVE DAMAGE FOR NATIONAL SECURITY. 

PROSECUTORS TOLD THE COURT THEY HAVE TAPE RECORDINGS OF MR. GROAT
SAYING HE HOPED TO GO ABROAD TO SELL CLASSIFIED INFORMATION. THEY
ALSO SAY HE HAD SUCH MATERIALS AND A DISGUISE KIT IN HIS VEHICLE 
WHEN ARRESTED. THE GOVERNMENT WARNS, MR. GROAT HAS ONLY REVEALED 
PART OF WHAT HE KNOWS, AND FURTHER DISCLOSURES COULD PUT BOTH 
INTELLIGENCE OPERATIONS AND LIVES AT RISK.

MR. GROAT'S ATTORNEY UNSUCCESSFULLY ARGUED FOR HIS RELEASE, AND 
ACCUSED THE PROSECUTION OF SPREADING FEAR AND UNFOUNDED 
SPECULATION.  THE JUDGE ORDERED HIM HELD WITHOUT BOND, PENDING 
TRIAL.

THE BEARDED 50-YEAR OLD FORMER SPY IS CHARGED WITH TELLING TWO 
FOREIGN GOVERNMENTS, WHICH HAVE NOT BEEN PUBLICLY NAMED, HOW THE 
C-I-A BROKE THEIR SECRET CODES.

                  // REST OPTIONAL FOR LONG  //

OFFICIALS SAY HE ALSO TRIED TO BLACKMAIL THE AGENCY BY 
THREATENING TO REVEAL SUCH THINGS AND DEMANDING HALF A MILLION 
DOLLARS IN RETURN FOR HIS SILENCE.

THE C-I-A SAYS MR. GROAT HELD A LOWER RANK THAN TWO OTHER RECENT 
TURNCOATS, ALDRICH AMES AND HAROLD NICHOLSON.  HOWEVER, TWO OF 
THE CHARGES AGAINST HIM CARRY A POSSIBLE DEATH PENALTY.  THE 
JUSTICE DEPARTMENT SAYS IT HAS NOT DECIDED WHETHER TO SEEK THAT 
PUNISHMENT. (SIGNED)



NEB/DS/ENE/PT

16-Apr-98 6:02 PM EDT (2202 UTC)
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Source: Voice of America
.