53. Memorandum From the President’s Assistant for National Security Affairs (Carlucci) to President Reagan1

SUBJECT

  • Meeting Between the President and the Secretary of State Relating to Moscow Embassy Situation

In his last meeting with you Secretary Shultz2 said he would discuss the Moscow Embassy Security situation with you at some future time. The following is an update in preparation for that meeting.

—Schlesinger3 returned from his trip to Moscow last night (5/27). He may indicate the construction of the Embassy building is not as bad as reported in the press.

—Secretary Shultz was recently briefed on the results of the joint [less than 1 line not declassified] fly-away teams that visited 10 countries to look at the state of security. The teams have provided several recommendations about improving security at overseas missions. Among the recommendations is the need for a standardized non-fraternization policy which can be strictly enforced. The teams found this area a weak element in our security policy.

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—The teams also found little or no counterintelligence [3 lines not declassified].

—The Naval Investigative Service continues to pursue the espionage investigation involving the Marines. To date, they have interviewed 155 Marine Security Guards (MSG) and polygraphed 104. Out of this group, two have admitted espionage and two are strongly suspected of espionage. Six more have shown deception on polygraph questions relating to espionage. In addition, between 45 and 50 Marines have admitted unauthorized contact with criteria country citizens or other infractions of regulations or illegal activities, some of which may involve KGB recruitment operations directed against MSG personnel.

—To date, investigators have discovered no physical evidence in Moscow to prove the Soviets made entry into our Embassy’s secure spaces.

—Secretary Shultz may raise the issue of funding needs to address issues raised by the Moscow security situation and the problems we are finding at other posts.

  1. Source: Reagan Library, 1987 SYS 4 RWR INT 40301–40325. Secret. Copied to Howard Baker. A stamped notation indicates that Reagan saw the memorandum on May 29. Reagan initialed the top right-hand corner of the memorandum.
  2. The President met with Shultz, Howard Baker, Carlucci, and Duberstein from 1:31 to 2:04 p.m. on May 27. (Reagan Library, President’s Daily Diary) No substantive record of the meeting has been found.
  3. Reference is to former Secretary of Defense James Schlesinger, whom the President had appointed to review the construction of a new Embassy in Moscow after the discovery of Soviet bugging devices.