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had previously provided information to the staff about Moon Organization
investment in the DNB. Wallace---who has several criminal convictions-claimed
to be a journalist, though it was uncertain when he entered that field. As of 1977,
he ran a business called The Spy Shop, which sold electronic listening devices.
In September 1977, Wallace did write an article--using the name Walter Riley-
-in which he accused the subcommittee chairman of being a Russian agent and
of adhering to the Communist line. As far as could be determined, no newspaper
carried this article until late November 1977, when it appeared in News
World.
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Wallace denied he was paid by the Moon Organization or that he cooperated
with it in his numerous attacks on the subcommittee, its chairman, and the
investigation. He told a staff member that his article appeared in News World
only after two Korean Government officials, whom he did not name, visited his
office and noticed the unpublished article. The two Koreans took a copy of the
article when they left, and shortly thereafter it appeared in News World,
according to Wallace.
554
On December 11, 1977, the day after subcommittee
staff members arrived in Korea on a well-publicized investigative mission, the
article was summarized on the front page of the Korea Herald, a Korean
Government publication.
555
Thus even in 1977 and 1978, when both the Korean Government and the
Moon Organization were disavowing ties with one another, there was reason to
believe that relations between them were still being carried on, though less
openly. As discussed earlier, the Tong I1 officers who came to the United States
in December 1977 to discuss exporting M-16's told Colt representatives that,
although the Korean Government was aware of Tong Il's discussions with Colt,
the Government would deny such knowledge if questioned.
The relationship between the Moon Organization and the ROK Government is
a dynamic one, changing over time. The Organization's close relationship with
Kim Jong Pil and the positions held
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by Steve Kim and Bud Han in the Korean Government provided continuous
access to influential officials, access Moon saw as necessary to attain his goals.
Favors were granted the Moon Organization by the Korean Government, and, in
return, assistance was provided ROK officials for the furtherance of government
policies or for the personal benefit of the individuals involved.
Economic activities
The economics of the Moon Organization are extraordinarily complex. As
addressed by the Korean investigation, they fell basically into two categories:
business enterprises and financial transactions.
Businesses
The role of businesses associated with Moon and the UC has contributed to
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