European Stars And Stripes (Newspaper) - August 28, 1988, Darmstadt, Hesse                                Page 28 the stars and stripes sunday August 28,1988 2nd sex i broke spy ring paper says Frankfurt West Germany a a second former . Soldier implicated in an International spy scandal provided information that led investigators to crack the 10-year operation a West German newspaper reported sat urday. And in Washington army official said the retired sergeant first class who allegedly headed the spy ring held a to secret Security clearance but never had the periodic mandatory follow up re View. Clyde Lee Conrad 41, remained in prison saturday facing espionage charges. The Bonn based die Welt newspaper said the second Soldier whose name has not been released provided the information that led to the  die Welt has found Oul that no charges have been filed against the Sec Ond american citizen although he is still in the Federal Republic West Ger Many the conservative newspaper said. It did not elaborate. Alexander Prechtel spokesman for the Federal prosecutor s office said he could not confirm or deny the report. The americans first informed us about the suspicions against Conrad on Friday aug. 12," Prechtel said. He said . Investigators had been trailing Conrad Long before then but he said he did not know the source of the information that led investigators to suspect Conrad. West German officials arrested Conrad on tuesday. Prechtel told the stars and Stripe Friday that no More arrests were expected in West Germany. He said his office did not know the name or the Loca Tion of the second Soldier although officials in Germany say the second american was a Soldier when he was recruited the Washington pos quoted administration sources in Washington As saying he has since left the service. Conrad held a top secret clearance from March 1978 until his retirement in september 1985, an army spokesman at the Pentagon said. Normally a background Check i done every five years it. Col. Greg Rixon said. But Rixon acknowledged that Conra had never been subjected to the usual follow up background investigation to keep his clearance. In the late 1970s and Early 1980s, the defense department fell behind and they weren t getting them done that quickly the spokesman said. According to Rixon Conrad was investigated and authorized for a top secret clearance in March 1978 during his first tour with the Headquarters company of the 8th inf div in bad Kreuz Nach West Germany he also served with the 8thinf div from november 1980 until his retirement. Rixon said he had no information Vonconrad s specific duties while with the 8th inf div but he stressed that a to secret Security clearance did t necessarily give Conrad Access to everything marked top secret. Access is still based on a need to know basis said Rixon. In other developments lbs to quoted West German investigators assaying Conrad May have kept in numbered Swiss Bank accounts the $ 1 million he reportedly was paid. Lbs said investigators uncovered Europe wide operation entered in con Rad s Home near bad Kreuz Nach with other agents operating out of three Neutral countries. It said they included an agent in Switzerland who handle Money two hungarian Brothers in swe Den who acted As couriers and a hungarian intelligence officer in Vienna Austria said to be Conrad s controller. Swiss prosecutors said Friday the launched an investigation into a possible Swiss connection. Lbs added that the different Way countries handle spy cases became advantageous to Conrad s alleged  Austria espionage is considered a crime Only if it is against the Austria government and Swiss Law does not allow it to lift banking secrecy Laws for espionage investigations. Fleet from Page 1 saying it involved several alleged  asked about statements by other defense sources that the allegations included adultery Baker would Only say the allegations had no connection with vice adm. Moranville s operational responsibilities As commander 6th  in fact he continued to do an outstanding Job As commander 6th Fleet until relieved on aug. 20," Baker said. But in recognition of vice adm. Moranville s rights in the matter it would be inappropriate to discuss the matter  although Moranville has requested retirement the review of the punishment meted out at the Admiral s Mast still could be important. As is the Case with any Flag officer of three or four Star rank it is up to the chief of naval operations and the Secretary of the Navy to decide whether to recommend retirement at the Grade an officer currently holds. It is then up to the Senate to make the final decision. An Admiral s Mast is a closed door non judicial proceeding for senior naval officers during which an Admiral reviews the evidence and decides if any discipline is warranted. Baker said Moranville was travelling to washing ton Friday on temporary assignment pending re View of his Admiral s  the spokesman declined to attempt to Contact him for comment. The 6th Fleet headquartered in Gaeta Italy nor Mally consists of about 30 ships 100 aircraft and 20,000 sailors and marines. Moranville who had commanded the 6th Fleet since july 1986, was re placed by vice adm. James d. Williams 52, former director of the program information Center for the Secretary of the Navy. The Navy said the change of command was a routine scheduled change. However what was not routine was that the 56-year-old Moranville de parted without the Navy announcing new orders for him. The Navy rarely proceeds with a change of com Mand involving officers at the rank of three stars without having announced the next Job of the offi cer who is moving on. Moranville won the three Star rank of vice Admiral on june 1, 1985. In this Case sources said Moranville a Veteran Pilot who fought in Vietnam had been widely re Mored to be on his Way Back to Washington. According to one Navy source Moranville was thought to be returning to the Pentagon to become the next Deputy chief of naval operations for naval warfare. The Navy announced in May that the current Deputy chief for naval warfare vice adm. James r. Hogg had been tapped to become the next . Representative to the nato military committee. The service still has not announced Hogg s Succes Sor. Dubuque Captain will face court martial proceedings by Norman Black a military writer Washington the Captain of the Dubuque is being relieved of his command and ordered to prepare for military court martial proceedings because of his failure to Rescue a Boatload of vietnamese refugees Pentagon sources said. Some of the refugees claim they resorted to cannibalism to survive after the Dubuque an amphibious transport Dock failed to Rescue them. The Pentagon sources who agreed to discuss the matter Only if not identified said capt. Alexander  was notified of the Navy s decision on Friday. Balian has 10 Days to Appeal the decision regarding his command to vice adm. George w. Davis jr., the chief of surface ships in the Pacific Fleet. Because Balian s loss of command for cause is considered permanent blight on an officer s career any Appeal will go directly to the chief of naval personnel. The site of the court martial has yet to be selected but Balian has been told to begin preparing for an article 32 hearing the rough equivalent of a civilian grand jury proceeding and the first step in a military court martial the sources said. However a spokesman for the naval surface . Pacific Fleet in san Diego said the Navy still is investigating and has t decided yet whether to take further action against Balian. Senior chief Petty officer Steve Hinney also said rear adm. Geoffrey l. Chesbrough commander of the naval surface group mid Pacific has been or dered to investigate the matter. Rear Admiral Chesbrough will review the information available and make a determination As to whether or not any kind of further action is warranted Hin Ney said. Balian 48, was relieved temporarily of his com Mand of the Dubuque on aug. 13 pending the out come of a Navy investigation. That investigation ended a week ago with the Captain being charged with dereliction of duty and ordered to appear at an Admi ral s Mast. Last tuesday Balian exercised his right to refuse the Admiral s Mast forcing the Navy to decide whether it wanted to escalate the matter to the level of a court martial or to simply drop the charges. On Friday according to the sources Davis served Balian with notice of his loss of command and ordered the article 32 investigation. Balian has been charged with violating a general Navy regulation by wrongfully failing to Render appropriate assistance to vietnamese refugees found on the South China sea on june 9, 1988, in danger of being  a second count accuses him of violating standing operational orders for the Pacific Fleet which require a commanding officer to Aid and Rescue refugees encountered at sea in life endangering  the Dubuque encountered the Boatload of Vietnam Ese refugees while proceeding to duty in the persian Gulf. The Navy has said the Dubuque gave the Refu gees several Hundred pounds of food and water and navigational aids but did not take them aboard be cause the refugee Craft was judged seaworthy by Balian. Navy regulations and orders specify that warships should be Alert for refugees on the High seas and if encountered ships Are to extend humanitarian assist Ance As  in the Case of an a seaworthy vessel Adverse weather or other special circumstances the refugees May be embarked and transported to the Navy ship s next port of  the boat people eventually were rescued off the coast of the Philippines and taken to a refugee Camp there where reports of murder and cannibalism began to surface. Plane from Page 1 bound said another. There she goes shouted someone else. During the ensuing fight with the gunboats which used the 5-Inch guns mounted on deck one crewman yelled i Don t know where it s  come on let s keep it Down said another Over the Din of the radio transmissions and firing of the guns. In the tape a crewman stared intently at a Green radar screen a supervisor paced Back and Forth and someone called out the positions of the approaching vessels. Then the missiles blasted off from the ship s deck. Crewman wearing earphones shouted of dead three other crewmen gathered around him and he shouted that was a dead on relax shouted someone. Keep the noise Down another person yelled. Knock it off ordered another. Direct hit on the air plane asked someone. Yes another replied. Within 10 minutes the Crew of the Aegis class Cruiser which contains the Navy s most sophisticated elec tronic warfare equipment realized it had shot Down a Airliner and began a futile search for survivors Abc reported. The defense department s report said several of the Crew s assumptions about the approaching flight were wrong including that it was descending toward the Vincennes and flying outside a commercial air Corri Dor. Iran has rejected . Claims it was partly responsible for the tragedy saying the Navy s presence in the persian Gulf was to blame