104 10106 10716

12 December 1967

SUBJECT: SCHLUMBERGER WELL SURVEYING CORPORATION (See Houma Munitions Dunker - Lease" by Subject firm)

ALLEGATION:

GARRISON has charged that the burglary of the Houme munitions bunker was "CIA-Inspirei." He issued arrest warrants for Gordon NOVEL and-Sergio ARCACHA SITE charging them with the Houma burglary.

SOURCE:

Enclosure 24 of CI/R&A remorandum of 7 August 1967.

CIA CONNECTION:

CIA had no connection with the alleged burglery of the Houma Munitions Bunker or any connection with the bunker itself. However, Pierre SCHLUMBERGER, prezident of the SCHLUMBERGER CORPORATION, was of contact interest in 1950 for routine exploitation as a foreign intelligence source. The FBI advised they had no objection to the Agency's interrogating Pierre SCHLUMBERGER who was an alien. In 1962 DAYSTRON, INC. was acquired by SCHLUMBERGER, INC. The Agency had a contract with DAY- STRON for an unclassified item ($49,000 contract for the production of Mark II limmet mines); Agency interest was classified Secret. SCHLUMBERGER, LTD. is a Dutch firm controlled by French nationais. After the Kerger, it was determined that future relation- ship with DAYSTRON must be governed by Agency policy not to place classified contracts with & foreign firm. In 1963 the same decision was reaches concerning Agency con- tracts with Electro-Fechanical Research, Inc., *a subsidiary of SCHLUMBERGER, LTD. ENR dealt in all phases of telemetry. Contact clearances for other personnel of SCHLUMBERGER are set out below.

OS INDICES RESULTS:

The SCHLUMBERGER COMPANY was the subject of a nare check in 1947 bec use of a contact request, and it was determine) that there are mrber of SCHLU PERCER corporations in Latin America which are domi- nated by French nation:18. SCHLUBERGER has a patented operation for an oil vell shooting" service which is subscribei to by various oil companies. The SCHLUMBERGER WELL SURVEYING CORPORATION in Fouston was controlled by Henri Ceorges DOLL, & French national. Be was of contact interest in 1956 and 1957. Eis wife is the daughter of Conrad SCHLUMBERGER.

139.

In August 1951 the Agency was interested in contacting Professor Edouard POLDINI, a geophysicist and professor at the University of Geneva and formerly an employee of the SCHLUMBERGER CORPORATION in Paris, for operational use. He was to be used as a channel to a Janus KANTAS who could give information about the fate of the previous employees of the Jersey Company in Hungary, the production figures and extent of exploitation of existing oil fields and exploration of new oil fields together with the names of the officials of the Russian Hungarian Company who took over the Jersey Company.

In March 1953 the SCHLUMBERGER file reflects that an FBI source furnished information that one Maurice Henri MARTIN, employed as an engineer by the SCHLUMBERGER Company, Paris, France, received a letter dated 27 July 1951 at Moscow from one Biegfried Stefanovitch MOROSOFF, asking MARTIN for specialized information concerning geophysics. The letter requested that MARTIN's reply be forwarded to Moscow through an inter- mediary. From January 1932 until April 1937 MARTIN represented the SCHLUMBERGER Company in Russia as an engineer, and it was thought that the correspondence from MOROSOFF may represent a Soviet attempt to resume contact with MARTIN and develop clandestine relations with him. The FBI conducted an investi- gation dated June 1953 and determined that Maurice Henri MARTIN resided at Nod Hill, Wilton, Connecticut and was employed by the SCHLUMBERGER Well Surveying Co., Ridgefield, Connecticut. Informants advised that although MARTIN was strongly nationalistic toward France, he gave every indication of being anti-Russian and there was no evidence of CP activities.

When DAYSTROM, INC. merged with SCHLUMBERGER, LTD., research was done on the directors and officers of SCHLUMBERGER, LTD. The results are as follows:

OS indices reflect a record on Dillon ANDERSON, a trustee of Electro-Mechanical Research, Inc. (a subsidiary of SCHLUMBERGER, LTD.) who was also a proposed trustee of "NEW DAYSTROM" when it merged with SCHLUMBERGER. ANDERSON is an attorney from Houston, Texas who was appointed by President EISENHOWER as an advisor to the National Security Council from 1953 until 1956. He was considered for a special clearance in August 1955 but the briefing was not given. He was granted a covert O clearance in December 1953 and April 1954 for use as a covert associate on Project LPFUNNEL. J

Pierre SCHLUMBERGER, President and Chief Executive Officer, SCHLUMBERGER, LTD., Houston, Texas, French citizen, was of contact interest in 1950.

Charles C. PARLIN, Director of SCHLUMBERGER, LTD., and a member of the law firm of SHEARMEN, STERLING and WRIGHT, Englewood, New Jersey, U. S. citizen, was of contact interest in 1962 but was security disapproved. PARLIN was allegedly the boy friend of Johanna BEKER who was in contact with known Soviet Agents, ROBERT and JACK SOBLE. BEKER advised the FBI in 1957 that she received, paid for and transmitted to Robert SOBLE, OSS information which was given her by two former OSS employees. She also advised the FBI in 1957 that she

had given a very general outline of her activities to PARLIN ani it is reliably reported that PARLIN and EMER shared a hotel roon in Folland in 1957. PARLIN recorrented & Willion bart LANCASTER for OSS employrent. LANCASTER was a member of the care law firm as PARLIN and had a long record of Cortunist, front affiliations. PARLIN in 1956 traveled to Jussia as a member of & delegation under the sponsorship of the National Council of Churches. De was also the lawyer for & Swiss & zament industrialist who sola erms to the Nazis and the Communist countries since that time.

Clark Drouillard GOODMAN, Vice-President of SCHLU-BERGER, Ltd., Houston, Texas, U. S. citizen, was security disapproved for use by TED in 1952 and for contact use in 1955 based on his support of Frofessor Dirk STRUIK, & colleague at FTT, who was indicted on chere of having been a Communist conspirstor and identified as a Cormaist Party member. In Farch 1959 the same derogatory information wis furnished the Contact Office to be considered in determining any use of GOOD AN. Also, a book written by GOODHAN's wife, Kay Ellen GOOD AN, was favorably reviewed by the 'DAILY WONER" in 1956.

Jean C. LEGRAND, Vice-President of the SCHLUBERGER WELL SURVEYING CORPORATION, Pigefield, Connecticut (U. S. citizen, naturalised Fouston, Texas 1941) was approved for contact use in Kay 1957. Ele file is clear. There is a notation that one Hrs. J. C. JESSAND, 5319 Fanell Street, Houston, Texas, in Noventer 1944 was Fresident of the Houston Chapter, France Forever, The Fighting French Committee in America.

Everett STRAITOR, Sales Manager, Houston Area, SCHLUMBERGER WELL SURVEYING Corporation, Fouston, Texas, U. S. citizen, was security proved (CAUTION) for contact use in October 1950. His file is clear.

Daniel SCHIANBERGER, French citizen, archeologist and teacher t the University of Strasbourg, France in 1955, vis granted sa over tional approval for use as a contract arent in Kabul in April 1956 but the clear ace vis encelled 20 September 1956. Eis file is clear. Fowever, in & Tile on Nicholas KAGAK, French financier, and suspected Soviet agent, which contains detailed study of the inter- relationships and family connections existing in French firms, information on Daniel SCEUBERGER is containe¹ therin. Daniel SCHAU BERGER, & rester of the EU PERCER WELL SURVEYING Corporation, vas head of the French Archeologicel Deletion in Afghanistan (1948- 1954). An associate of Daniel SCHLUBERGER WAS REoul CURIEL of a wealthy Jewish banking family in Cairo, Egypt. Raoul and his brother, Henri CUREN Cortunist chrounds and their mother we cant to Deore SLME Co lich Soviet ar to Pefected to Pussis. BLATE lived with the FIER's in Circ. Iso Cilbert PONTECORVO, known Comunist, relative of the CURIEL family wus in cont et with Dumento ARIEL, involved in the Geore DE case. Bruno PONTECORVO, Gilbert's brother, in the storie scientist wo defected to Russic in 1950, worked for the Well Surreyin fomor tion, Tulsa, 01hor, from 1940 to 1942 but it was not own it the SOCU BERGER Well Surveying Corporation is in ny way connected with the Well Surveying Corporation in Tulse.

SCELUMBERGER end Company and another SCHLUMBERGER subsidiary Mru, Machine Bull (Competitor of IBK), are connected with Schneider and Company, 42 rue d'Anjou, Paris. Francois SAAR-DEMICHEL, manager of Compagnie Internationale de Commerce, represents SCHNEIDER for the USSR and is a Soviet agent. In September 1961, an investigation conducted in France disclosed that "everything that takes place in the Elysee is known in Moscow within 48 hours and the originator of such intelligence is Francois SAAR-DEMICHEL." Machines Bull is controlled by General Electric Company of the U. S. and SCHNEIDER and Company is affiliated with U. S. Westinghouse Corporation under the name SCHNEIDER-Westinghouse.

The Study in KAGAR's file contains the following additional information concerning SCHLUMBERGER and Company:

Haurice and Remi SCHLUMEERGER are affiliated with Lazard Freres and the Worms Bank. Lagard Freres controls SCHNEIDER- Westinghouse and has a New Orleans Branch Office. Closely associated with the SCHLUMBERGER's is Charles DOH. DOH was born et Odessa in 1911 and arrived in the United States in 1937 to join the SCHLUMBERGER Hell Surveying Corporation at Houston, Texas. He became a U. S. citizen on 6 September 1950. Charles has a brother, Jean, who was closely associated with Leonard FOURAU, & suspected Soviet agent. HOUNGU was closely associated with Francois S/AR-DEMICHEL, previously reatione Soviet agent connected with SCHLUMBERGER and Company. Charles DOE was approved for Agency contact use in September 1955 es a member of the SCHLUMBERGER Well Surveying Corporation. His file is clear.

Roger Robert Henri KENQUET, Executive Vice-President, SCHLUMBERGER Well Surveying Corporation, Fouston, Texas, was approved for contact use on a limited basis in October 1950. He had been an erployee of OSE from 1943 to 1945; was given American citizenship and the Congressional Vedal of Ponor for his deeds during World War II.

Arthur Henry FPENTROP, an employee of the SCHLUMBERGER WELL SURVEYING CORPORATION, Ridgefield, Connecticut, was of contact interest in June 1956. Information concerning his spouse's critical attitule towerde American customs and institutions and the dominant osition she exercised over her busband was furnished the contact office.