Dear Mr. Blakey:
Forwarded herewith are answers to the interrogatories received at close of business on 28 August 1978. Sincerely, S.D. Breckinridge Principal Coordinator, HSCA Attachment
Question #3 Define Nosenko's present and past employment arrangements with the Central intelligence Agency. Include: a. the dates and nature of his employment b. the services rendered by Nosenko c. itemized accounting of all compensation received by Nosenko d. an account of the roles of Richard Helms and John McCone in authorizing Nosenko's employment and compensation arragements with the CIA. Prior to Nosenko's defection on 4 February 1964, he was promised $5O,O00 for previous cooperation, $10,000 for his identification, in 1962, of a particular espionage agent, and $25,000 a year compensation for future services. Mr. Richard Helms approved the foregoing on 17 February 1964. Although no effort was made to fulfill the promise until some five years after Nosenko's defection, the original promise formed the basis for the eventual employment arrangement and other monetary remunerations. Following acceptance of Nosenko's bona fides in late 1968, Mr. Helms approved an arrangement which resulted in Nosenko's employment as an independent contractor effective 1 March 1969. This first contract called for him to be compensated at a rate of $16,500 a year. As of 1978, he is receiving $35,327 a year (see attached annual compensation table for years 1969-1978).
In addition to regular, yearly compensation, Nosenko was paid for the years 1964-1969 in November 1972, in the amount of $25,000 a year less income tax. The total amount paid was $87,052. He also received, in varying increments from March 1964-July 1973, amounts totalling $50,000 to aid in his resettlement on the private economy (see attached table for breakdown). The total resettlement figure, in effect, satisfied that portion of the above 1964 promise to pay Nosenko $50,000 for previous cooperation. In 1976 Nosenko was paid $10,000 to satisfy that part of the above promise relating to his identification of an espionage agent. Further, he was compensated in the amount of $28,500, representing the difference between the $25,000 a year promised and the actual amount paid to him during the period 1 March 19691 March 1975. Since 1969, the Agency has contributed to Nosenko's hospitalization insurance premiums. The Agency has also compensated him for certain unusual medical and dental expenses. To date, NoSenko continues to work as an independent contractor, with the compensation provision being periodically amended. His work for the Agency includes consultation with both the Agency and the FBI on certain matters of current interest concerning Soviet intelligence activities and personnel both in the U.S. and abroad. From time to time he is also consulted by various elements of the Agency on current Soviet developments and requirements. He has been and continues to be used as a regular lecturer at counterintelligence courses of the Agency, the FBI, Air Force OSI, and others. Our records do not show that Mr. John McCone played any role in authorizing Nosenko's employment and compensation arrangements with the CIA.
ANNUAL COMPENSATION TABLE
Effective 1 March 1969 $16,500 a year
Effective 1 March 1970 $18,500 a year
Effective 1 March 1971 $19,500 a year
Effective 1 March 1972 $21,000 a year
Effective 1 March 1973 $22,250 a year
Effective 1 March 1974 $23,750 a year
Effective 1 March 1975 $25,250 a year
Effective 1 March 1976 $26,513 a year
Effective 1 October 1976 $28,103 a year
Effective 1 March 1977 $33,000 a year
Effective 9 October 1977 $35,327 a year
1978 $35,327 a year
RESETTLEMENT FEE TABLE
March 1964 $2,000 April-May 1969 $8,000 (furniture and auto) June 1970 $25,000 ($20,000 for down payment on house; $5,000 for additional furniture, moving expenses, and other costs incidental to the purchase of new home) July 1973 $15,000 (balance of resettlement figure promised)
What was the CIA's position from 1964 to 1968 on the question of whether Nosenko is bonafide? 13. What is the CIA's position today on the question of whether Nosenko is bonafide? The point is that CIA, per se, did not reach an agreed position on Mr. Nosenko until late 1968. Various persons within CIA entertained serious doubts about his bona fides, believing in fact that he was a dispatched agent. Had the Agency, as distinguished from those employees, so concluded he could simply have been turned back. The final conclusion was that he is a bona fide defector, a judgment that has been reinforced convincingly by 14 years accumulated evidence.