14: Pawley's Caribbean Oyster

With his Doolittle Special Study Group’s work done, Pawley continued pursuing his lucrative Latin American activities. He was issued a regular passport on December 14, 1954 “to visit Venezuela for an undetermined stay on personal business.”1 As a teenager, he had ridden a donkey into the Venezuelan jungles “to sell stearic acid and paraffin” and in his early twenties returned “to sell diving suits” to pearl hunters. Two decades later, he and Edna “spent Easter in Caracas, Venezuela with Walter Donnelly and his wife.”2

Like his father, the Caribbean region became the focus of Pawley’s expanding financial wealth. In his autobiography, Pawley detailed how he became entwined in business with Trujillo while the guest of honor at the head table of a large dinner attended by “400 Dominicans and Americans, evenly divided.” He “sat between Trujillo and our Ambassador [William Townsend] Pheiffer.” The discussion turned to “mining and oil ventures which led into the subject of the need for the Dominican Republic to develop its abundant natural resources.” Pawley soon became an adviser to Trujillo on how to profitably exploit the island nation’s natural resources and the “results were spectacular, especially in the development of one of the most valuable nickel mines anywhere.3

Pawley also took advantage of Trujillo’s business-friendly climate—funding and presiding over two companies in Santo Domingo, Dominican Republic, Petrolera Cominicana, C. por. A. and Minera y Beneficiadora Dominicana, C. por A., which became the largest nickel mine in the Western Hemisphere, giving him a stronger relationship with the dictator. Pawley’s brother Edward once again helped run things, and William’s son, William, Jr., got involved. The companies were eventually sold to a division of Falconbridge Nickel of Canada.4

Assistant Secretary of State Henry Holland helped successfully negotiate the contract between Alcoa [the Aluminum Company of America, based in Pittsburgh, Pennsylvania and controlled by the Mellon family] and the Dominican Republic. Alcoa, began mining bauxite in the Dominican Republic in 1959 and continued until 1983, when it turned its concession over to the state.5 As a result of Holland’s successful negotiation and their longstanding work together in the State Department, Pawley made Holland a paid consultant to his mining companies.6

When the CIA’s Chief of the Western Hemisphere Division received a message regarding propaganda blasts causing tension between the Dominican Republic’s Trujillo and Cuba’s Fulgencio Batista governments from the Chief of Station, it mentioned factions including ex- Cuban President Carlos Prio Socarras, Fidel Castro, and Rolando Masferrer, a Batista crony. The message went on to state that Mexican Ambassador “Del Rio supports the suit of Ralph C. Fair of Texas” while “EMCEE backs William D. Pawley and Henry Holland ... Financial bone of contention” was Dominican “petroleum and minerals. Alcoa in anti-Pawley group.” (The EMCEE cryptonym had not been deciphered as of March 2023.) The November 1956 dispatch raised a troubling question, “How involved is Soviet Embassy Mexico in the Cuban-Dominican fight?”7

Obviously more than Café Bustelo was percolating in the Caribbean and Pawley was once again in the heat of it. In January 1957, the CIA’s Chief of Station in the Dominican Republic advised WHD Chief that “Pawley contacted both President Batista and Generalissimo Trujillo” and the tense “matter was handled privately without fanfare.” The countries agreed to exchange ambassadors at Pawley’s behest.8

Trujillo’s unpredictable nature was a concern to the United States which feared he “might terminate the Sabana guided missile air base agreement ... a blow to our defense program. The Air Force considers this base quite important though not absolutely indispensable.” Moreover, Trujillo “might apply pressure on the few remaining large U.S. investors in the Dominican.” The State Department noted “West Indies Sugar Corporation was pushed out, the Lockjoint Pipe Company is under fire now anyway and Alcoa is being pressured for larger royalty payments. We have comparatively little left beside the South Puerto Rio Sugar Company and William Pawley's mining interests.”9

Pawley also caught the attention of the CIA’s WHD when he became a focus of a dispute caused by the Dominican Republic’s movie censorship board declaring 35% of “Mexican films unfit for public consumption.” The matter was further exacerbated when Francisco Del Rio Canado, Mexican Ambassador to the Dominican Republic, and Bruce Tillman, the country’s Columbia Picture representative, “claimed that many of the French and Italian Films were far more immoral than Mexican films.”

Ambassador Del Rio also asserted that “there were groups in existence which had vested interest in painting the Mexican Government as being pro-Communist ... and intimated that some American businessmen (meaning undoubtedly William D. Pawley and Henry Holland) were very active in spreading derogatory information about Mexico.” When Del Rio “lashed out heavily against Britain and France” and “argued that the United States had nothing to gain from alliance with nations so monetarily, spiritually, and morally bankrupt.” The individual whose name was redacted at that point “lost patience with Del Rio’s language and began to question severely Del Rio’s judgment.”10

A March 25, 1957 memorandum from the CIA’s Chief of Inspection Review Staff to the Deputy Director of Plans detailed allegations made a month earlier by Pawley regarding possible indiscretions of the CIA’s Chief of Station in the Dominican Republic whom Pawley perceived

as “a busybody and an extremely conceited boy” who “wants to be in the middle of everything and he talks to everybody in the world.” Pawley believed the person is “always trying to milk me for information because he sees I am from the government.” Unnamed “Dominicans are scared to death of him, and I am afraid to talk to the guy and that isn’t the type of man you want in the CIA.”

The Chief of Inspection interviewed Ambassador William T. Pheiffer and officers of the U.S. Embassy in Ciudad Trujillo who “without exception spoke highly of [REDACTED] and of his integrity, loyalty, cooperation and capability” but several noted he “was an incessant talker and that he has annoyed people with seemingly inexhaustible accounts of history and social science.” However, he was “‘secretive’” and reluctant “to reveal sources of information” which “was annoying to officers.”

Interviews were also conducted with personnel outside the Embassy, including Roger Rice, Manager of the Texaco Company, who said that the object of Pawley’s rant “was highly regarded in the American business community.” Rice’s wife who “teaches at the American school and spends considerable time playing bridge with the wives of American businessmen” said “he was well liked.”

According to the accused “and other embassy officials, there are many U.S. citizens who have vested interests in the Dominican Republic, among whom several are mentioned as apologists for the Dominicans for business reasons. Two of those frequently mentioned during the course of this inquiry were a Mr. Robert Christenberry, a former Foreign Service officer, and Mr. William Pawley, a former Ambassador.”

The Chief of Inspections also reported that the accused “is particularly aware of the latter’s closeness to General Trujillo ... stated that he had discussed with Pawley on a number of occasions some of the implications of revolutions in Latin America” because the accused “believed that Pawley’s long service in the U.S. government and known position justified confidence in him.” The accused “leaned over backwards in not presenting an anti-Trujillo position because he was aware of Pawley’s close ties with Trujillo ... at one time he asked Pawley for information on the Galindez case.” According to the inspection memo, Dominican relations with the unnamed CIA agent were strained by the mysterious disappearance of Jesus Maria de Galindez, an alleged Basque Intelligence Agent, and separately a U.S. citizen Gerald Murphy. “Mr. Pawley stated that he did not mix business and politics, and that in the Dominican Republic he was in business.”11

Representatives of the CIA’s Inspection and Review and Western Hemisphere groups came to the conclusion that “it is a moot question whether or not that question posed to Pawley was indiscreet. Regard after the event, it probably was indiscreet. But regard in the light of Mr. Pawley’s previous sensitive employment and stature in the U.S. government and previous relations with [REDACTED] it was a question which probably could have been asked by the most discreet U.S. employee in similar circumstances.”

The Inspection and Review Chief recommended that the unnamed agent be allowed to “complete his present tour of duty which will expire on 28 September 1957.” Evaluation of a second individual was also recommended.12

During the spring and summer, Pawley also would be mentioned by the FBI in an Internal Security probe of Manuel De Moya Alonso, rumored to be intimately involved with Trujillo; but others believed Trujillo was not homosexual.13 Pawley popped up again in a probe of the First Governor of the Central Bank of the Dominican Republic, between the years 1947- 1951, Jesus Maria Troncoso Sanchez (spelled Ironcoso in some documents.)14

The following year, the CIA detailed some of the ways Pawley had made the Dominican Republic his oyster beyond his oil and nickel interests. He was concluding negotiations “for the purchase by Pawley of the Hotel Hamaca in Boca Chica, a resort town near the almost- completed new international airport, about 30 km east of Cuidad Trujillo.” And an “activity which is kept very much under wraps is the concession granted Pawley for procurement and world-wide sale of all new issues of Dominican postage stamps. This activity is managed by Edward P. Pawley, brother of William, whose office is in the Dominican post office building.”15

A month before this interest in the Pawleys’ Dominican activities, William Douglas Pawley of 2555 Lake Avenue, Sunset Island No. 2, Miami Beach, Florida was “issued a passport on 2 May, 1958 at Washington, DC ... for a two to three months pleasure trip to England, France, Denmark, Sweden, Norway and Bulgaria.”16

FOOTNOTES:

1 NARA 1993.07.31.11:55:16:030034 ~ 1/26/1960 “W.D.P. - #78435 – Summary of Info Contained is File Is At Passport Office.” From: [None]. To: [None].

2 Anthony R. Carrozza, William D. Pawley. Pages 9 and 154.

3 Pawley, Russia Is Winning, Chapter 19

4 National Cyclopedia of American Biography, Volume 60. Page 215.

NARA 104-10049-10399 ~ 10/10/1955 “Extracts from Despatch [sic] No. 165 Dated 10 Oct 55 and No. 251 Dated 14 Dec 55 re Pawley, William D.” From: [None]. To: [None]. Subjects: Extracts; Ciudad Trujillo; Pawley, William.

5 Alcoa in the Dominican Republic, sources: The Library of Congress Country Studies and CIA World Factbook www.photius.com/countries/dominican_republic/economy/dominican_republic_economy_mining.html

6 Anthony R. Carrozza, William D. Pawley. Page 271.
>> Pawley’s payment of Holland raised the hackles of prominent newspaper and radio columnist Drew Pearson.

7 NARA 104-10160-10102 ~ 11/25/1956 “Cable Message. Subject: Operational Cuban – Dominican Relations – Propaganda Attacks, Cuba. From: Chief of Station.” [REDACTED]. To: Chief, WHD.

8 Operational: Cuban-Dominican Relations: William B. [sic] Pawley To: Chief, WHD. From: Chief of Station, [REDACTED) January 27, 1957.

On January 27, 1957 a CIA Dispatch was sent to the Chief, Western Hemisphere Division, regarding the tense Cuban-Dominican Relations.

1. COS [Chief of Station; name REDACTED] has received a report to the effect that the recent Cuban- Dominican troubles were settled personally for the PBPRIME Chief of State by Mr. William B. [sic] Pawley, former Ambassador to Peru and Brazil, who is now engaged in petroleum activities in the Dominican Republic.

2. According the story received by COS, Pawley contacted both President Batista of Cuba and Generalissimo Trujillo of the Dominican Republic. The matter was handled privately without fanfare with the result that the Cubans sent their Minister of Agriculture to represent them at the great Cattle Fair. The Dominicans made a great show of courtesy toward the Cuban Minister.

3. It is understood that Pawley believes Batista and Trujillo will exchange ambassadors in the very near future.

4. COS would appreciate confirmation from Headquarters of the truth of the above report which came form a source which does not wish to be mentioned.

        The above is for Headquarters’ private information and not for dissemination. 

9 Foreign Relations, 1955-57, Volume VI. Page 902.

10 NARA 1993.08.09.17:07:29:370007 ~ 2/3/1957 “Unsanitized CIA File of William Pawley. CIA Routing and Record Sheet.” Page 8 of 267.

NARA 1993.08.09.17:07:29:370007 ~ 2/3/1957 “Unsanitized CIA File of William Pawley.”
CIA Cable. To: Chief WHD. From [REDACTED]. Subject: Mexican-Dominican Relations: Francisco Del Rio Canado [Mexican Ambassador to the Dominican Republic].

11 NARA 104-10139-10021 ~ 3/25/1957 “Alleged Indiscretions of ((Deleted)) in Dominican Republic.” To: Deputy Director (Plans). From: Chief Inspection & Review Staff. Subjects: Pawley, William, Indiscretions.

>> This CIA memorandum detailed allegations made a month earlier by Pawley regarding alleged indiscretions of an individual whose name was redacted. Pawley had stated to the Director the individual was “... a busybody and an extremely conceited boy ... he wants to be in the middle of everything and he talks to everybody in the world ... he is always trying to milk me for information because he sees I am from the government ... not only the Dominicans are scared to death of him, and I am afraid to talk to the guy and that isn’t the type of man you want in the CIA.” The memo further stated:

7. In order to determine whether or not [REDACTED] has been indiscreet as alleged, the following officers of the U.S. Embassy in Ciudad Trujillo were interviewed:

William T. Pheiffer, Ambassador

Francis L. Spalding, Counsellor of Embassy and First Secretary 

Robert M. Allen, Second Secretary

Harry K. Lofton, Second Secretary and Consul

Richard H. Stephens, Second Secretary for Economic Affairs 

Commander Ralph C. McCoy, U.S. Naval Attaché

8. These officers without exception spoke highly of [REDACTED] and of his integrity, loyalty, cooperation and capability ... Several officers mentioned that [REDACTED] was an incessant talker and that he has annoyed people with seemingly inexhaustible accounts of history and social science.

9. On the other hand, Embassy officials have found [REDACTED] to be “secretive”. His reluctance to reveal sources of information was annoying to officers.

12 NARA 104-10160-10062 ~ 3/25/1957 “Alleged Indiscretions—Dominican Republic.” From: Chief, Inspections and Review. To: Dep Dir (Plans). Subjects: Pawley; Indiscretions; Trujillo.

13 NARA 1993.08.18.14:07:51:030064 ~ 5/6/1957 FBI “Document and Coversheet on Manuel De Noya [Moya] Alonso. FBI File #MM 100-7621.” Subject: Manuel De Moya Alonso – Internal Security

See Memo for the Record Additional information regarding William D. Pawley contained in FBI files NARA 1993.07.30.15:27:34:680034

14 NARA 104-10049-10107 ~ 6/25/1957 FBI “Memo: Jesus Maria Troncoso Sanchez W/CIA Routing Slip.” From: FBI/New York. Subjects: Sanchez, J.M. T.; Caceres, M.E.; and Hernandez, A.

>> Some FBI documents refer to Troncoso while others have Ironcoso (page 18 of 23). Pawley is mentioned on page 19.

NARA 1993.08.09.18:23:38:310007 ~ 6/25/1957 “Pawley mentioned in FBI File #NY 105-23189.” Subject: Jesus Maria Ironcoso Sanchez – Internal Security.

“Words of Presentation de la ‘Pinacoteca del Banco Central’, Of the Art Gallery of the Central Bank." Banco Central de la Republica Domininica. www.bancentral.gov.do/discursos.asp?a=discurso_2005-10-20

CD “Sígueme” de Manuel Troncoso y Designación Sala Principal del CD, "Follow Me" by Manuel Troncoso and Designation of Main Hall Auditorio con el Nombre de “Jesús María Troncoso Sánchez” Auditorium with the name "Jesus Maria Sanchez Troncoso" Martes 18 de octubre de 2005 Tuesday October 18, 2005.

15 NARA 104-10049-10317 ~ 6/12/1958 CIA “Dispatch. Subject: Operational, Pawley business interests in the Dominican Republic.” From: Chief of Station [REDACTED]. To: Chief, Western Hemisphere Division.

NARA 104-10049-10375 ~ 6/12/1958 CIA “Dispatch—Subj: Pawley business interests in the Dominican Republic.” From: Chief of Station. To: Chief, WHD. Subjects: Pawley, W.; Pawley, E.

1. Mr. William D. Pawley has substantial investments, negotiations are being concluded for the purchase by Pawley of the Hotel Hamaca in Boca Chica, a resort town near the almost-completed new international airport, about 30 km east of Cuidad Trujillo.

2. Another activity which is kept very much under wraps is the concession granted Pawley for procurement and world-wide sale of all new issues of Dominican postage stamps. This activity is managed by Edward P. Pawley, brother of William, whose office is in the Dominican post office building.

3. ... The source volunteered the information on a very confidential basis to Helene I. Dahlerup at a social gathering.

NARA 104-10265-10141 ~ 6/12/1958 CIA “Dispatch—Operational. Subject: Pawley business interests in the Dominican Republic.” From: [None]. To: Director. Subjects: Pawley, William; Dominican.

NARA 1994.05.18.13:23:17:130005 ~ “Reel 55, Folder L William D. Pawley, Material Reviewed at CIA Headquarters by House Select Committee on Assassinations Staff Members. File Title: Pawley, William D. 201- 77378 (Vol. 1, undated thru 30 April 60). Page 211 of 220.

“Smathers at Conference—Miamian Pawley had a Part in Trujillo’s ‘Free Vote’ Vow.” By Leo Adde and David Kraslow, The Miami Herald, undated press clipping.

16 NARA 1993.07.31.11:55:16:030034 ~ 1/26/1960 “W.D.P.—#78435—Summary of Info Contained in File Is At Passport Office. From: [None]. To: [None].