27. Memorandum From the Executive Secretary of the Department of State (Levitsky) to the President’s Assistant for National Security Affairs (Carlucci)1

SUBJECT

  • A Second Marine in the Security Guard Espionage Case

A second Marine who served as a guard in Embassy Moscow has admitted during a polygraph examination on March 20, 1986 that he helped Lonetree commit espionage against the United States. This [Page 99] Marine, Cpl. Arnold Bracy, was also sexually involved with a Soviet national who worked as a cook in the Embassy. The Soviet woman introduced the Marine to a KGB operative who apparently also worked with Lonetree.

When the two Marines worked together, Bracy claims to have deactivated, reset or disregarded alarms, knowing that Lonetree and the Soviets were in sensitive and restricted areas of the embassy, including the communications area. He has said that he gave cipher combinations to Lonetree knowing that Lonetree was allowing the Soviets into the secured areas. He said that Lonetree provided the Soviets with classified documents out of the burn bags, as well as blue prints of the embassy building. It appears that the Soviets repeatedly were allowed into sensitive areas of the embassy for hours at a time when the two Marines were standing duty together.

Lonetree transferred from Moscow to Vienna in March, 1986. Bracy’s tour of duty in Moscow began in July, 1985 and ended in August, 1986 when he was caught fraternizing with the Soviet cook. At that time, he stated he was approached by her, but denied sexual involvement or espionage activity. He was then removed from post and debriefed. No other incriminating information was obtained until the polygraph examination conducted by the Naval Investigative Service (NIS) in California.

Bracy admitted to receiving about $1,000 from Lonetree for the espionage activity. Bracy has terminated his cooperation with the Government and has requested an attorney.

On Sunday afternoon, March 22, counterintelligence representatives of the Department of State and the CIA conferred with NIS colleagues to pursue jointly the new investigative leads and other appropriate steps.

Melvyn Levitsky
  1. Source: Reagan Library, 1987 SYS 4 RWR INT 40151–40200. Secret; Sensitive.