REPORT OF THE SUBCOMMITTEE ON INTERNATIONAL ORGANIZATIONS
OF THE COMMITTEE ON INTERNATIONAL RELATIONS
U.S. HOUSE OF REPRESENTATIVES
OCTOBER 31, 1978
Printed for the use of the
Committee on International Relations
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WASHINGTON : 1978
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THE MOON ORGANIZATION
Introduction
During its 1976 investigation of KCIA activities in the United States, the subcommittee received numerous allegations concerning Sun Myung Moon (225) and organizations associated with him. By that time, Moon and the Unification Church (UC) had generated controversy throughout the United States over a variety of issues. Many Americans were distressed by the recruitment techniques of the UC. Others questioned the failure of the UC to state openly its ties with the numerous groups it had set up; the use to which it
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put its tax-exempt status; the propriety of its owning and operating an armaments plant in South Korea; possible links to the South Korean Government; and Moon's statements in late 1973 and 1974 concerning President Nixon and Watergate. The most volatile controversy raged around the charges that "Moonies" were brainwashed. The UC in turn countercharged that parents were kidnaping UC members for "deprogramming" and successfully obtained court orders restricting the activities of the deprogrammers.
Among the witnesses who testified before the subcommittee in 1976 was Lee Jai Hyon, a former official of the ROK Government who had been stationed at the Korean Embassy in Washington.(226) Lee described what appeared to him to be "a curious working relationship"(227) involving the Korean Government, the UC, and other organizations associated with Moon. Lee said that Pak Bo Hi, Moon's aide and translator and president of the Washington-based Korean Cultural and Freedom Foundation (KCFF), had access to the Korean Embassy's cable channel to Seoul; that KCIA agents at the Embassy maintained contact with the Freedom Leadership Foundation (FLF), another Moon-related organization in Washington; that Moon had founded the "Little Angels," a Korean children's dance troupe which had appeared around the world as official representative of the Korean Government; that South Korean President Park Chung Hee had mailed out 60,000 letters on behalf of the KCFF; and that Moon operated an anti-Communist indoctrination center in Korea for Korean Government employees and military officers. Lee also pointed to Moon's rise to wealth and prominence under the Park regime and suggested that this could only have occurred with the active cooperation of the KCIA and other branches of the Government.
Allen Tate Wood, a former UC member who had been president of the FLF, described to the subcommittee some of Moon's political ambitions and activities. He said that Moon, through the UC and its numerous front organizations, wanted to acquire enough influence in America to be able to "dictate policy on major issues, to influence legislation, and move into electoral politics."(228) In the United States, the political goals of the UC and those of the KCIA "overlap so thoroughly as to display no difference at all."(229) Wood also charged that Moon was violating U.S. laws by importing aliens to raise funds and that fundraising by UC members was often done under false pretenses.
Another witness, Robert Roland, (230) described his friendship with Pak Bo Hi when Pak was a military attache at the Korean Embassy in Washington in the early 1960 s. According to Roland, Pak was then engaged in intelligence liaison work and was also proselytizing for Moon and the UC. Pak told Roland of his plans to use the KCFF and one of its projects, the Little Angels, to advance Moon's cause, as well as to help the Korean Government. (231)
The subcommittee heard a former UC member, Chris Elkins, describe political activities in which he had engaged for the FLF.
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These included working on a congressional election campaign, lobbying for South Korean military aid bills, and staging demonstrations. Elkins said that many of Moon's activities in the United States were designed to impress the Korean Government with his importance. (232)
During 1976, the subcommittee also received information about an apparent attempt by Moon and his followers--along with Tong-sun Park--to buy a controlling interest in the Diplomat National Bank (DNB), which opened in Washington D.C., in December 1975. Neil Salonen, president of the UC of America, was called to testify concerning this and other allegations. Salonen said he had bought DNB stock at the suggestion of Pak Bo Hi, but denied the UC was in any way involved in financing the DNB stock purchases. (233)
Use of the term "Moon Organization"
By April 1977, when the Investigation of Korean-American Relations began, although the subcommittee had received a wide variety of specific allegations concerning Moon and the organizations associated with him, the subcommittee had little understanding of the scope and nature of his movement. It soon became apparent that he was the key figure in an international network of organizations engaged in economic and political as well as religious activities. The numerous churches, businesses, committees, foundations, and other groups associated with Sun Myung Moon emerged as parts of what is essentially one worldwide organization, under the centralized direction and control of Moon. This organization began as a small movement started by Moon in Korea in 1954. In the diversity of its functions and basic organizational structure it now resembles a multinational corporation, involved in manufacturing, international trade, defense contracting, finance, and other business activities. However, it goes beyond that in that it encompasses religious, educational, cultural, ideological, and political enterprises as well. In the training and use of lower ranking members, it resembles a paramilitary organization, while in other respects it has the characteristics of a tightly disciplined international political party.
Among the many organizations there is continuous and close interaction, principally in the form of personnel moving back and forth among organizations, intermixed finances, use of one component or another component as if both were one and the same, and, of course, the figure of Moon. Because of the close interrelationship of the various organizations, the subcommittee came to view them as one unit and refers to them in the aggregate as the Moon Organization in this report.
Goals of Moon
Before reviewing the components and activities of the Moon Organization, it is useful to look at various writings and speeches of Moon in which he discusses the goals of his movement and the
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means required to achieve them. Within that context, the Moon Organization becomes more comprehensible.
In many public statements and in applications for tax-exempt status, the goals of the Moon movement are said to be religious. Actions which appeared to be clearly political or economic to outsiders were explained as necessary means to achieve religious goals. The apparent contradictions in many of the activities of the Moon Organization are explained by Moon's overriding religious goal--to establish a worldwide "theocracy," that is, a world order which would abolish separation of church and state and be governed by the immediate direction of God. As Moon explained to his followers:
* * * In the Medieval Ages, they had to separate from the cities--statesmanship from the religious field--because people were corrupted at that time. But when it comes to our age, we must have an automatic theocracy to rule the world. So, we cannot separate the political field from the religious.
* * * Separation between religion and politics is what Satan likes most. (Italics added.) (234)
At the center of such a state would be Moon and his organization, based in Korea. In another speech, delivered to a crowd of over a million at an anti-Communist rally in Korea, Moon visualized the establishment of a "unified civilization" of the whole world, to be centered in Korea and "corresponding to that of the Roman Empire." (235)
Moon teaches American UC members to regard Korea with great reverence and he foresees the day when the Korean language will be spoken throughout the world:
In order to set up one culture, we must unify the languages into one * * * In the meal world centered upon God, everyone will speak only Korean, so no interpreter will be necessary. (236)
Moon promises to use his trained followers from around the world on behalf of South Korea in case of war, as he proclaimed at a public rally near Seoul:
* * * in case North Korea provokes a war against the South Korean people, they [UC members] believe it is God's will to protect their religious fatherland to the last, to organize the Unification Crusade Army, and to take part in the war as a supporting force to defend both Korea and the free World. (237)
Anti-communism is one key reason for Moon's espousal of a worldwide theocracy and rejection of some of the most fundamental tenets of American democracy. Moon finds "American-style democracy" to be "a good nursery for the growth of Communism.''(238) In a speech in Seoul, Moon proclaimed that God was helping to set up a final battle involving the United States, Russia, China, North Korea, South Korea, and Japan. Illustrative of the stridency of his ideology, he said: "We should defeat Kim I1 Sung [President of North Korea], smash Mao Tse-tung, and crush the Soviet Union in the name of God." (289)
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To achieve his theocracy, Moon has mapped out strategies for gaining control and influence over economic, political, cultural, academic, media, and religious institutions. The efforts of the Moon Organization are to be concentrated on key nations.
If we can manipulate seven nations at least, then we can get hold of the whole world: the United States, England, France, Germany, Soviet Russia, and maybe Korea and Japan. On God's side, Korea, Japan, America, England, France, Germany, and Italy, are the nations I count on in order to gain the whole world. (240)
Moon's strategy is designed to influence a wide range of institutions. "We must approach from every angle of life; otherwise, we cannot absorb the whole population of the world. We must besiege them."(241)
In the economic sphere, Moon foresees the emergence of a ' system which would respond to centralized control:
"This system should eventually prevail so overwhelmingly, that even in Japan and Germany, the people will not buy products.from their, own country, but will buy according to centralized instructions. What kind of system of thought or economy can function to give these centralized instructions? Religion is the only system that can do that. So in the future, this system of thought or system of economy will have a close relationship with religious organizations. Our master is going to prepare for this system of economy."(242)
In the political field, Moon has spoken of using a variety of techniques to achieve world influence. He hopes to found a political party: "My dream is to organize a Christian political party including the Protestant denominations and Catholics and all the religious sects."(243) Activities in cultural, academic, and other fields are ultimately designed to create political influence and temporal power. Cultural and educational projects are part of his organization's overall goal of controlling major institutions in the U.S. and other key nations and influencing political decisions and policies. In a January 1973 speech, Moon spoke of the necessity of establishing universities in seven key nations, including the U.S., and of organizing international conferences at which cultural groups like the Little Angels would perform."(244) He made it clear that influencing professors, scientists, and economists would be followed by direct influencing of political figures:
"After that, beyond what the professors will be able to do by influencing the policies of the country, we will work directly with those people who, under every government now, make the policies--the congressmen, senators and parliament members--by organizing the World Congressmen's Association. For that purpose we are working hard in Japan."(245)
Moon has often told his followers to expect opposition to the goals he sets for them, but he assured them of ultimate. ''victory." In one 1974 speech, he noted that up to that time, opposition to his movement had gone unpunished. This, he promised, would change:
"** * so far the world can be against us and nothing happened. Now when .they are against us then they are going to get the punishment. So from this time*** every people or every organization that goes against the Unification Church will
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gradually come down or drastically come down and die. Many people will die--those who go against our movement."(246)
Moon based his movement on a church because it provides the greatest opportunity for reaching his goals. A UC publication discussed a change in the American organization's name from 'United Family" to "Unification Church," noting that "The reason for the change is that we must ultimately have our effect on the institutions of society." (247) It is important to Moon's strategy to have his movement recognized as a religious one. An ex-UC member stated:
"The teachings of Sun Myung Moon were often referred to by other members as an "ideology" that would change the political systems of the world. It was made clear to me that so long as the church-related aspects of the group were emphasized, Moon's followers would be in a protected position as far as first amendment religious freedom was concerned, and be able to take advantage of tax laws as well."(248)
Components of the Moon Organization
The evolution of the Moon Organization has been in keeping with the worldwide goals expressed by its head. Initially, it consisted of the "Holy Spirit Association for the Unification of World Christianity," the precursor of the Unification Church.(249) This was followed by cultural, political, and economic organizations, each of which in turn was able to spawn its own, separately named projects, committees, and substructures.(250) In many cases, the ties of the subordinate organizations to the UC were carefully hidden.
For the sake of analysis, these groups can be viewed as falling into one of three categories. The first are those whose major function is to attract new members to the UC, though their relationship with the UC may be hidden. CARP (Collegiate Association for the Research into Principles); Creative Community Project (formerly known as New Education Development Systems, Inc. and the International Re-Education Foundation); the Center for Ethical Management and Planning; and the One World Crusade are among them.
A second category consists of groups which focus on the secular goals of Moon and the UC. Examples are the International Cultural Foundation, which has sponsored annual international science conferences on the "unification" of science; the Korean Cultural and Freedom Foundation; and the Freedom Leadership Foundation.
The final category includes economic enterprises, ranging from multi-million dollar industries to small retail stores.
The origin and activities of the major components of the Moon Organization are described below.
Unification Church
In 1954, Sun Myung Moon and a small group of his followers founded the Holy Spirit Association for the Unification of World
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Christianity (HSAUWC) in Korea. Through this group, Moon preached his interpretation of the Bible; many of his doctrines were summarized and expounded as The Divine Principle, which is essentially Moon's gospel. Although Moon's teachings were not accepted by traditional Christian churches in Korea, his movement attracted enough converts to enable it to expand beyond South Korea beginning in the late 1950's.
Moon sent one of his followers, Choi Sang Ik, as a missionary to Japan to establish the movement there; another follower, Kim Young Oon, was sent to Eugene, Ore. in 1959 for the same purpose. By the early 1960's, Choi Sang Ik, having established the movement in Japan, had moved to San Francisco, where he attempted to spread Moon's teachings. Kim Young Oon had by then moved to Berkeley, Calif., while David S. C. Kim, another early Moon convert, was in New York City. In 1961, Pak Bo Hi, an English-speaking Korean Army officer, was assigned to the Korean Embassy in Washington as a military attache. Pak had joined Moon's movement in 1957, and while in Washington he helped to recruit and proselytize on behalf of the movement.
In September 1961, Kim Young Oon and several other Moon followers living in the San Francisco area formed a California corporation which they called Holy Spirit Association for the Unification of World Christianity. The following year, Pak Bo Hi registered an association of the same name in Virginia. Its address was given as Pak's home in Arlington. Also living at that address, and a member of the original board of trustees along with Pak, was Jhoon Rhee, who later became well known as the owner of a chain of karate studios.
Both the California corporation and the Virginia association declared that they were organized solely for religious, charitable, and educational purposes and that they would not, to any substantial degree, engage in:
* * * carrying on propaganda, or otherwise attempting to influence legislation, or participating in , or intervening in (including the publication or distribution of statements), any political campaign on behalf of any candidate for public office.(251)
Both the California and the Virginia organizations applied for and received exemption from Federal income tax.(252)
The various Holy Spirit groups in Korea, the United States, and elsewhere gradually came to be known-collectively and individually--as the Unification Church (UC). (Unification Church is a direct translation of the Korean term Tong-il Kyohoe.) The California corporation became the legal foundation for the national Unification Church, (Unification Church of America), which eventually
moved its headquarters to New York City.. As of March 1977, the officers and directors of the national organization were:(253)
Directors Officers
Mose Durst Neil Salonen, president
Joseph Sheftick Edwin Ang, vice-president
Neil Salonen Rhonda Schmitt, secretary
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William Bergman David Hose
Edwin Ang Clifford Yasutake, treasurer
Michael Warder
In addition to the national organization, State UC's were formed throughout the United States. Many of the officers and boards of directors of these State UC's overlapped with the national organization, with each other, and with non-UC components of the Moon Organization. The UC of Washington, D.C., incorporated in 1967, had among its directors in 1976: Kim Young Oon, Neil Salonen, Jon Schuhart, Michael Leone, Clifford Yasutake, Edwin Ang, Rhonda Schmitt, Michael Warder, Mose Durst, Joseph Sheftick, and William Bergman.(254) The UC of New York at various times, had Takeru Kamiyama, Joe Tully, William Bergman, Walter Gottesman, and Michael Runyon as directors; Tully, Runyon, Kamiyama, and Gottesman also served as officers of the UC of New York.(255) A California affiliate of the UC which was organized under the name "International Re-Education Foundation" had as officers and directors Choi Sang Ik, Walter Gottesman, and Michael Warder.(256)
The International Re-Education Foundation was but one of the names used by branches and affiliates of the UC. Often, there was no indication that a local UC was connected to the larger organization. Many ex-members reported that attempts were made to disguise the local groups' ties to Moon and the national UC, particularly during fundraising and recruiting efforts.
Nevertheless, UC publications make clear the cohesiveness of the many branches, not only within the United States, but abroad as well. Prior to 1971, UC members in the United States generally referred to their organization as the Unified Family. The January 1971 edition of New Age Frontiers, part of which was quoted earlier, explained the change in name to Unification Church:
"In light of the need to bring ourselves into a position to effect a change in American society, he announced the first change-our name is now the Unification Church. The reason for the change is that we must ultimately have our effect on the institutions of society. The name implies respectability and stability."(257)
The growth of the UC in the United States had been slow in the 1960's. Moon arrived in the United States in December 1971 to take charge of his movement here. Reportedly furious with the disorganized state of the American UC and its lack of discipline, he instituted a number of reforms such as structural reorganization, intensive training, and a major recruiting effort, in which Moon himself took a leading role. There was a parallel fundraising effort, aimed at supporting the operations of the national UC headquarters and seminary. National fundraising teams of 10 members each were set up throughout the United States. It was estimated that most of these teams could net $1,000 per day or more. The state and regional teams were also contributing an unknown amount.
To meet some of the personnel requirements of the fundraising, several hundred foreign UC members were brought into the United States in 1973 on student or tourist visas.(258) Many were Japanese,
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noted by Moon for their trustworthiness. Often they were assigned to handle the books and insure that the proper remittances were made to the national church.
Estimates of UC membership varied widely, and the subcommittee made no attempt to arrive at precise figures, either for the United States or abroad. Neil Salonen testified in January 1977 that in the United States there were 30,000 UC members, of which 7,000 were "core" members who devoted all their time to the church.(259) Salonen also said that the UC was active in all 50 States and in 120 countries.
Former members of the UC and others who have closely observed it expressed the opinion that Salonen's figures were exaggerated.(260) However, the subcommittee did confirm that the UC was active throughout the United States and in many other countries, particularly Japan, England, and West Germany.
International Federation for Victory over Communism and Freedom Leadership Foundation
The Moon Organization began to involve itself in anti-Communist activities in the early 1960's. This was during a period when Korean Government leaders, especially Kim Jong Pil, were stressing the need to develop a strong anti-Communist ideology to counter the ideology of Kim Il Sung in North Korea.(261)
Anti-Communist doctrines and activities were woven into all aspects of the Moon Organization. In the name of anti-Communism, Moon's followers allied themselves with powerful right-wing figures in Japan, such as Ryoichi Sasakawa, and openly participated in election campaigns there; lobbied on behalf of the U.S. military presence in Vietnam; canvassed congressional offices; picketed in front of the U.N.; and sponsored meetings of the World Anti-Communist League (WACL).(262) In a speech, Moon told his followers: "We must have a dual organization; one is the church organization and the other is the Victory Over Communism organization.(263)
The principal vehicle for Moon's anti-Communist activities was the International Federation for Victory over Communism (IFVOC) and its affiliates around the world. (IFVOC was originally called the International Federation for the Extermination of Communism). It was formed in 1968 and was headquartered in Seoul; its Japanese affiliate, called Shokyo Rengo, was also formed in 1968, while the American affiliate, the Freedom Leadership Foundation
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(FLF), was incorporated in the District of Columbia in 1969. In 1977, the FLF directors were: (264)
Neil Salonen, president; W. Farley Jones; Philip Kent Burley; Kim Young Oon, George Edwards; Dan Fefferman; Jon Schuhart; Nora Martin Spurgin; and Judith Barnes.
Most of the FLF's financial support came from the UC.(265) FLF obtained Federal tax exemption as a nonprofit educational organization "dedicated to developing the standards of leadership necessary to advance the cause of freedom in the struggle against communism.(266) Moon was listed as its founder. One of FLF's principal activities was the publication of a newspaper called "The Rising Tide." In 1977, Neil Salonen was the publisher, Michael Smith, executive director, and Dan Fefferman and Hal McKenzie, among the associate contributing editors.
Allen Tate Wood, president of FLF in 1970 and a UC member for 4 years, told the subcommittee that Moon had personally ordered the expansion of his anti-Communist organization into the United States and saw the FLF as a means of influencing and controlling American institutions:
"* * * in 1970 when I visited Korea, and I had several private audiences with Mr. Moon, he told me that as president of the Freedom Leadership Foundation, it was my responsibility to begin a campaign in the United States to win the power centers in the country."
At that time, he said: "FLF will probably win first the academic community." (267)
Wood further quoted Moon: "Once we can control two or three universities, then we will be on the way to controlling the certification for the major professions in the United States." Wood believed, despite stated purposes to the contrary, that Moon conceived of the FLF as a political arm of the movement.
Wood described the early opposition of some UC members toward engaging in political activities:
"At this stage in the Movement's development, the general membership was politically unsophisticated. The idea of a political arm was new. The purists in the movement who believed that a church should have nothing to do with polities voiced strong opposition. It was pointed out to them that the Church in Japan and Korea carried out extensive anti-Communist political programs.
They were told that it was Master's expressed desire to begin political work in the United States. Thereafter, members objections to political activities was considered infidelity to Master and was like being disobedient to God." (268)
According to Wood, this policy decision by Moon, carrying with it the force of a religious command, triggered the start of political activities in the United States--contrary to the statements of Salonen and other Moon Organization spokesmen who portray UC members' political activities as the free exercise of their independent political beliefs.
Emphasis on support of anti-Communist activities and groups brought Moon into contact with numerous political, academic, and business leaders, contacts which were exploited to the advantage of the Moon Organization. UC publications contained photos of Moon meeting with Eisenhower, Thurmond, Humphrey, Kennedy, Nixon,
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and other American political figures; publications boasted that U.S. Congressmen and media figures supported FLF activities, and even held receptions in honor of Moon. (269)
International Cultural Foundation
Moon founded the International Cultural Foundation (ICF) in Japan in 1968. Its American affiliate was incorporated in New York in 1973. Among the first directors were:
Osami (Henry) Kuboki.--President of the UC in Japan, an official in the Shokyo Rengo and WACL, and one of the Moon Organization's stockholders in the Diplomat National Bank;
Kim Young Whi.--Stockholder in Il Hwa Pharmaceutical Co.;
Pak Bo Hi--President of KCFF, UC of America; and
Moon.--who was also chairman of the board.
Other ICF officers were: Neil Salonen, president
Paul Werner, vice president
Dennis Orme, vice president
Michael Warder, secretary
Joe Tully, treasurer. (270)
A Moon Organization publication, the New Hope News, quoted Moon in 1975 as saying that "ICF wants to make a totally new culture."(271) The ICF functions principally in the academic and scientific field, in much the same way as KCFF, FLF, and other groups served in their respective fields to gain legitimacy for the Moon Organization and expand its contacts with influential segments of society.
The two main projects of the ICF are the annual International Conference for the Unity of the Sciences and the International Leadership Seminar.(272) The "Unity of the Sciences" conferences have attracted numerous prominent scientists and academicians, including several Nobel Prize laureates. They are well-organized and expensive; the New York Times reported that the 1977 conference cost the ICF $500,000.(273)
Other units associated with Moon which are directed toward the goal of winning scientists, academics, and members of the university community are variously styled Professors Academy for World Peace, Collegiate Association for the Research of Principles (CARP), and International Leadership Seminar. The May 10, 1974 edition of New Hope News contained the following passage relating to Moon's plans to influence American universities:
"Father wants to mobilize 20 or 30 of the Korean professors to influence American academia, both professors and students. Because of this, Father stressed the importance of building up CARP (Collegiate Association for Research of the Principle) to serve as a foundation for their work when they arrive.
Father said that college campuses are a major battlefield, and if we win there we will definitely win America."(274)
In speeches to his followers and in internal publications, however, Moon made it clear that he considers science conferences and other ICF projects to be part of his organization's overall goal of controlling major institutions in the United States and other key
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nations and of influencing political decisions and policies. The January 30, 1973 Master Speaks, for example, contained a remarkable exposition of the worldwide aspirations of the Moon Organization and the part to be played by science and other conferences:
"The policy-makers in the background are the professors. Even though they represent the cultural field, more than anything else we need scholars in the scientific fields--in the political, cultural, and economic fields. That's why we opened the Unified Science Conference in Europe last month. Next time we will have the Unified Economists' Conference, and after that the World Politicians' Conference. By our organizing the World Professors' Association we will have them win the people in each field to come and join us * * *. The scholars will set forth a subjective ideology, uniting the different fields into one. This will be the leading ideology of the world.
Back in their own countries, these scholars will influence their own national policies in a joint effort, which will enable us to direct the world policies toward the same goals * * * we will surely influence the policies of the whole world in the near future. In order to make it effective, we must have a very good university of our own. We must establish a university in at least seven nations: Korea, Japan, America, United Kingdom, France, Italy, and Germany." (275)
In the same speech, there is the revelation that the Moon Organization will soon "take over" a Korean university after having worked to that end for 1 1/2 years.
Unification Church International
The name "Unification Church International" (UCI) has been used in various contexts to describe the worldwide UC, apart from national, State, and local organizations. Pak Bo Hi talked about it as follows:
"The Unification Church International does not belong to any one country or one particular geographical location. It is above the national structure of our churches, so it will coordinate, assist, and spiritually guide, give the teachings and international programs organized and so forth."(276)
In December 1975, Pak opened a bank account in the name of UCI at the newly formed Diplomat National Bank. At the time, the status of UCI as a legal entity was unclear. It appeared that Pak had simply adopted--without any formal legal action--the corporate structure of the organization he had registered in Virginia in 1962 under the name "Holy Spirit Association for the Unification of World Christianity." (At the same time UCI letterheads were giving UCI's address as the UC estate in Tarrytown, N.Y., where Moon had his headquarters.)
The UCI bank account at DNB was opened with an initial deposit of $70,000 which came from funds which had been in Moon's personal accounts at Chase Manhattan Bank in New York. Only Moon and Pak were authorized to sign checks. By March 1977, over $7 million had been deposited in the account. Most of this money was received in the form of wire transfers or checks from abroad, some of which were clearly from foreign UC accounts. Over $6 million was received from Japan alone during this period.
During the same period, the UCI account disbursed large sums, mostly to accounts of other Moon Organization groups such as the national UC in New York. Moon personally signed the checks or transfer orders authorizing the disbursement of most of these
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funds, sometimes signing as "Chairman of the Board" and sometimes as "Founder" of UCI.
Beginning in late 1976, there were large disbursements from the UCI account to Moon Organization business enterprises such as News World Communications in New York and International Oceanic Enterprises in Virginia. By February 1977, these businesses had received over $2.3 million from UCI.(277)
On February 2, 1977 UCI was formally incorporated in the District of Columbia as a "not-for-profit corporation"; the incorporators were Pak Bo Hi and Pak's secretaries at the KCFF, Judith Le Jeune and Sandra McKeehan. Among the purposes of the UCI, as listed in the incorporation papers, were:
"(1) To operate exclusively for religious, charitable, literary and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1954;
(2) To serve as an international organization assisting, advising, coordinating and guiding the activities of Unification Churches organized and operated throughout the world."
The directors were:
Pak Bo Hi; Hak Ja Han (Mrs. Sun Myung Moon), Tarrytown, N.Y.; Won Pok Choi (a Moon aide and translator), Tarrytown, N.Y.; David S. C. Kim, Tarrytown, N.Y.; and Kim Won Pil, Seoul, Korea.(278)
Although the UCI had just disbursed over $2 million to businesses--a pattern that would continue--the organization applied for tax-exempt status, eventually denied by the IRS. (279)
It was unclear whether the UCI had any independent functions other than serving as a financial clearinghouse for various Moon Organization subsidiaries and projects. The address of the UCI--as reflected on bank records--was at various times Tarrytown, N.Y., Pak Bo Hi's home in McLean, Va., and Pak's KCFF office in Washington, D.C.
Korean Cultural and Freedom Foundation
The Korean Cultural and Freedom Foundation (KCFF) was incorporated in the District of Columbia in March 1964 as a nonprofit corporation; among its stated purposes were:
"(a) To accord honor and recognition to those Americans who fought and died for the cause of freedom in Korea and to those who have aided in the preservation and perpetuation of Korean democracy and culture;
(b) To provide, in coordination with appropriate departments of the United States Government and the Korean Embassy, for an extensive program of support and interchange in the fields of art, literature, the humanities and related cultural matters;
(c) To foster a mutuality of understanding, respect and friendship between the citizens of the United States and Korea. "(280)
The first officers and directors of KCFF were prominent Americans and Koreans who had some special interest or background in Korean-American relations. Arleigh Burke, former Chief of Naval Operations, was KCFF's first president; Yang You Chan, former ROK Ambassador to the U.S., its first executive vice-president; while William Curtin, a retired U.S. Army officer, was a vice-president and one of the incorporators.
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Pak Bo Hi was a military attache at the Korean Embassy in Washington when KCFF was incorporated and was not an original incorporator, director, or officer. Pak, however, testified before the subcommittee:
"The KCFF is truly my idea. I conceived this idea during my tenure as a diplomat serving in the Korean Embassy." (281)
The subcommittee found considerable documentary evidence which indicated that Pak was the moving force behind KCFF and that he was working for it and helping to shape its policies while still employed by the Korean Government. (282) Pak at the same time was active on behalf of the Holy Spirit Association, the UC branch he had registered in Virginia. Jhoon Rhee, a trustee of the Virginia association and a close friend of Pak's, became one of the original KCFF directors. Another original KCFF director was Robert Roland, who had a close relationship with Pak and Rhee between 1963 and 1965. Roland told the subcommittee:
"In early 1964, Col. Pak told of his plans to form the Korean Cultural and Freedom Foundation. He stated that the purpose of the KCFF would be to gain influence and raise money for Moon's cause * * * He described it very clearly that this was a front organization, and that it would be used to gain influence with wealthy people, government officials. Then he talked very clearly about using it as a fund-raising organization for the Moon organization."(286)
By early 1964, Pak had already taken steps to make KCFF serve Moon's cause, at a time when both KCFF and the Moon Organization were in their formative stages. A December 1963 brochure describing the KCFF--not yet formally organized--listed a Korean children's dance group called the Little Angels as the foundation's only proposed project. (284)
The Little Angels had been founded by Moon in Korea in 1962.(285) Pak referred to the Little Angels in an application for tax-exempt status which he submitted to the IRS in 1963 on behalf of his Virginia UC branch. Pak stated that the branch hoped to sponsor the Little Angels and other projects in the future, but could not do so then "because of the present pioneer state of the church."
"It is hoped that the future will allow sponsoring a Korean dancing group in various cities as a means of bringing the Divine Principles to more people and to thus further the unification of World Christianity." (286)
Largely through Pak's efforts the KCFF, rather than the UC, took responsibility for sponsoring the Little Angels, although Pak, in his IRS application, had indicated that the purpose of the group was to help spread the doctrines of Moon and the UC. Pak explained the KCFF sponsorship of the Little Angels to the subcommittee:
"Then what happened in 1964, we decided not to combine two things tgether, the cultural things done culturally, which is done by KCFF. That is why we organized the KCFF. In my testimony, I said the KCFF is my idea, so the church did not then tackle the Little Angels program." (287)
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Robert Roland testified that Pak hoped the Little Angels would "create influence for their movement, and also for the Korean Government." (288) A passage from the June 15, 1965, issue of the UC's New Age Frontiers described the Little Angels as "a group of Divine Principles children who perform traditional Korean dances." (289) In later years, the Little Angels were officially sponsored by the Korean Government on world tours; also in later years, Moon's connection with the Little Angels and his increasing use of them to further his own purposes became more apparent. (290)
By December 1964, U.S. intelligence agencies had reported on Pak's plans to link the KCFF to the UC. (291)
The subsequent history of KCFF is closely related to some of the most controversial issues in Korean-American relations; these issues are discussed in detail in other parts of this report. (292) Although KCFF was often involved in foreign policy controversies beginning in the mid-1960's, causing it to receive attention from a number of U.S. agencies, its ties to the Moon organization were not widely recognized prior to 1976. Until then, the KCFF had numerous supporters, advisers, directors, and contributors who were totally unaware of the connection.
In 1976, there was a split among officers and directors of KCFF over Pak's management of the foundation; there were public allegations by KCFF members that Pak was using KCFF as an arm of the UC. As a result of this feud, the Moon Organization's control over KCFF, which had been developing since the earliest beginnings of the foundation, became complete. (293)
Business enterprises
The Moon Organization controls numerous large and small businesses throughout the world and is constantly expanding into new business fields. These organizations are set up under a variety of names and often employ holding companies and other complex corporate structures so that their relationship to the overall Moon movement is not always apparent to a casual observer. However, the subcommittee found extensive evidence that many business enterprises--regardless of name or legal structure-are an integral part of the Moon Organization and are used interchangeably with its nonbusiness components.
Even the crudest analysis of the structure of Moon's businesses shows that, as with his nonbusiness organizations, there is a pattern of interlocking directors, officers, and stockholders. The inter-relationship of the businesses with the UC and other components of the Moon Organization is also made explicit in internal UC publications. There are frequent references to the "family" businesses. An illustrative example is found in a speech Moon gave to his followers:
"After speaking about the necessity for God's children to surpass every standard in the satanic world, which of course necessitates a solid financial foundation, Father
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talked about Family businesses in Korea: Tong-Il Industries (machinery), the titanium plant, and the ginseng tea factory. He described, significant expansion of the titanium plant (titanium is a metallic element used in alloys such as steel and in paints and other coatings), and he talked about the uncommon abilities of the Tong-Il engineers to design and produce reliable and sophisticated machinery enabling the company to win many defense contracts from the Korean government. He said the field we will enter next is that of electronics." (294)
In Korea, the most important Moon businesses were Tong Il Industries Co., Il Hwa Pharmaceutical Co., Il Shin Stoneworks, and Hankook Titanium Industrial Co. The Korean businesses had affiliates and export outlets in other countries, particularly Japan, where Tong I1 Industries was run under the name of Toitsu Sangyo.
The subcommittee did not obtain detailed financial and production data about the Moon industries in Japan and Korea, and Moon Organization spokesmen have been reticent in disclosing details. In a 1976 Newsweek interview, for example, while Moon acknowledged that his Korean industries had defense contracts with the Korean Government, he would not disclose what armaments were being produced on grounds that the information was classified. (295) Pak Bo Hi, in testimony before the subcommittee, acknowledged that Tong I1 made "sophisticated military instruments,'' but said he did not know which particular instruments, although he was certain Tong Il did not have anything to do with the production of M-16's. (296)
Data compiled by the U.S. Department of State in 1976 showed the following about the principal Moon business in Korea: (297)
(1) Tong Il Industries Co.
Tong I1 is the only one of Moon's industries designated by the ROK as a defense contractor. It manufactures air rifles, lathes, milling machines, boilers, and parts for the M-79 grenade launcher and the vulcan gun. (298) Tong Il's main stockholders were:
Percent
Unification Church ...................................................................... 53
Kim In Chul (former president of Tong Il) .................................... 36
Moon Sung Kyun (president as of 1978) ..................................... 4
Boek Ku Sub (executive director)......... ...................................... .006
The remainder of the stock was held in small amounts by 100 persons.
The report stated that Tong Il's 1975 sales were $4 million, with $488,000 in profits. Assets were listed as $4,666,000.
The State Department report identified Kim In Chul as a member of the UC's board of directors.
(2) Il Hwa Pharmaceutical Co.
Il Hwa was formed in 1971 to make and export ginseng extracts, primarily to Japan. Stock ownership was:
Percent
Kim Won Pil ........................................................... 5.2
Hong Sung Pyo .......... 5.1
Lee Yo Han 1.4
Lee Soo Kyung ....................................................... 1.5
Kim Young Hui......................................................... 1.9
Lee Sang Hon 1.5
Ownership of the rest of the stock was not given. In 1975, assets were $2.8 million, profits $1 million, and total exports $9,957,000. The U.S. representative was given as Lewis Burgess, Tong Il Enterprises, N.Y.
(3) Il Shin Stoneworks
Il Shin manufactures stoneware vases. Exports in 1975 totaled $600,000 and were handled by Tong Il Industries (Japan) and Shiawase Shoji Co., both located in Tokyo. Il Shin's stockholders were listed as:
Percent
Unification Church 22.3
Moon Sung Kyun 15
Kim Won Pil 10
Yoo Hyo Young 13.83
Chung Yoon Chang 8.33
Kim In Chul................ 5.84
Ownership of the remaining shares was not disclosed.
(4) Hankook Titanium Industrial Co. and Dong Hwa
Titanium Industrial Co.
The reports stated that Hankook Titanium was established in 1968 and became a joint venture with UC-Korea in April 1972.
Stock ownership was:
Percent
UC-Korea 76
UC-Japan .....5.32
Sun Myung Moon ................................1.49
Seung Kyun Moon 0.77
The report listed Hankook Titanium's 1975 assets as $4.9 million, gross sales $2,296,000, and profit $87,000.
Dong Hwa Titanium produces titanium dioxide, which is marketed in Korea to paint, rubber, and ink industries. It was established in 1973 and became a joint venture with UC-Korea in April 1974. Sun Myung Moon was chairman of the board and owner of 90.5 percent of the stock. A Japanese national named Yaji Junsei was listed as owner of 6.6 percent of the stock. Dong Hwa's assets were
put at $2.2 million, 1975 gross sales at $1,302,000, and profits at $164,000. According to the State Department information, the combined 1975 assets of the five businesses mentioned above were $14,970,000, with 1975 profits of $1,910,000, net worth of $7,410,000, and total 1975 sales of $18,627,000. The profit ratios of the Moon businesses were "slightly above average" for Korean businesses.
The State Department reports also stated that the executives in all five businesses were trained at Tong II Industries and that all important shareholders were active UC members.
A separate section of the State Department report commented that official Korean records indicated that the UC-Korea claimed
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$3,600 in assets; however, published financial statements showed assets, as of December 31, 1975, to be $4,535,000, with a net worth of $4,516,000.
The State Department's information was derived from World Traders Data Reports, which in turn are generally based on public sources and inquiries of industry representatives, and not on audits.
Earlier data gathered by the Export-Import Bank showed Tong I1 Industries 1972 sales to have been $400,000;(299) if both the Eximbank and State Department figures are accurate, Tong Il's sales volume in 1975 was 10 times higher than in 1972. This increase was consistent with executive branch reports and with the statements of a number of persons interviewed by the subcommittee to the effect that Tong Il's fortunes rose with the development of ROK defense production.
A UC publication contained an article on the titanium plant which described how the UC took over its operation in 1972.(300) After that, it was managed and operated mostly by UC members. In describing future plans for the factory, it was noted that titanium is used in aircraft and spaceship production. In another UC publication, Neil Salonen reported on a tour of the titanium plant and Moon's plans for its expansion:
"Father wants to expand and build the factory as soon as possible. We have a monopoly on the refining of titanium in Korea and actually a large corner on the world market because we can do it in a very sophisticated way."(301)
In January 1977, the ROK Government charged Kim Won Pil and other officers of Il Hwa Pharmaceutical Co. with conspiring to evade over $12 million in taxes, in addition to other offenses. A State Department cable reported that the specific charges included:
"Falsely, reporting purchase price of raw ginseng, falsely reporting capital increases by disguising stock distribution, failure to pay taxes on property acquired in the names of employees, and income tax avoidance by donating money to the Unification Church."(302)
The cable quoted Korean newspaper accounts which claimed that $6.2 million was transferred to Moon's church from Il Hwa without tax payment. It was noted that Korean law does not permit transfer of moneys when the same person--in this case Kim Won Pil--headed both a taxable and tax-free foundation. In that connection, the State Department commented:
"Kim Won-pil, president of Il Hwa Pharmaceutical, is also chairman of the board of directors of the Holy Spirit Association for the Unification of World Christianity (see 76 Seoul 5612). He also holds 1 percent of the shares in Il Shin Stone Works, and was executive director of Tong-il Industries, the Moon firm designated a defense industry by the R.O.K.G."(303)
In the same month that this State Department report was written (February 1977), Kim Won Pil acquired still another title in the Moon Organization when he became a director of the Unification Church International (UCI). Kim was one of Moon's earliest followers and had been arrested with Moon in 1955. (304)
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The State Department cable referred to possible political motivations by government officials in bringing the charges:
"Commercial sources indicate the Il Hwa investigation may be a strong attempt by R.O.K.G. to disassociate itself from Rev. Moon. Embassy sources indicated that the most likely reason for the arrests was to serve notice to Rev. Moon not to interfere with Korean politics, domestic or foreign." (305)
The subcommittee did not have access to the specific evidence produced by Korean authorities to support the charges against the Il Hwa officials. However, the State Department report on the charges, especially the portions on use of employee names to disguise stock ownership, use of the UC to avoid taxes, and directors and officers in common to both taxable and tax exempt organizations, described practices of the Moon Organization in the United States.
One of the earliest significant business ventures in the United States was Tong Il Enterprises, which was incorporated in New York in June 1973. The certificate of incorporation was signed by Takeru Kamiyama, and the first board of directors and their stock-holdings were: (306)
Sun Myung Moon, chairman of the board 25 percent
Mrs. Sun Myung Moon 10 percent
Takeru Kamiyama 5 percent
Cho Woo Eukman 5 percent
Michael Warder 2 percent
Neil Salonen 1 percent
Daikon (Kenji) Ohnuki 0.05 percent
Joe Tully 0.05 percent
Robert Wilson 0.02 percent
Tong II's main activity at first was the importation and marketing of ginseng tea and marble vases from Moon's companies in Korea; later it became involved in Moon's tuna fishing enterprises.
On the west coast the Moon Organization opened International Exchange Enterprises. It in turn ran a maintenance company, and owned a travel agency, Seno Travel Services. Daikon Ohnuki was one of the original directors of International Exchange Enterprises and owned 100 percent of the stock; in 1974 he transferred this stock to Sung Soo Kim, who was an officer in the travel agency.
Another officer of both International Exchange and Seno was Choi Sang Ik, founder of the UC in Japan and San Francisco and for many years a leading figure in the Moon organization. (307) A former UC member who worked for International Exchange stated that while the company was denying any link to the UC she was turning in her pay checks to the leader of the UC organization in the San Francisco Bay area. (308)
Media enterprises were also set up in the United States based on similar ventures already begun in Japan. In January 1975, the World Daily News Co. had been opened in Japan and began printing a daffy newspaper (Sekai Nippo) there; Mitsuharu Ishii was the president.(309) In February 1975, Moon has said in a speech to U.S. members:
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"This year we have to expand our UN campaign, work among all the Senators and Congressmen with our PR brothers and sisters, and we are going to establish a university. Another thing we are going to do is to start a newspaper plant." (310)
In the same speech, Moon said that UC "missionaries" around the world were to become involved in media activities, including setting up an international paper, in order "to guide the academic world including professors, the communications world, and then the economic world."
As Moon predicted, a daily newspaper was opened in the United States--in December 1976, News World began publication in New York. Among the officers and directors of the parent corporation, News World Communications, Inc., were Dennis Orme, president and Michael Trulson, secretary. Orme had been president of the UC in England and a director of ICF. The News World was staffed almost exclusively by UC members; for example, the editorial board included Michael Young Warder, Joachim Becker, Keith Cooperrider, and Hal McKenzie, all of whom had occupied positions in the UC hierarchy.
The competitive advantage UC staff members gave News World was apparent in August 1978, when a strike shut down the major New York dailies, making News World for a time one of the only choices for New Yorkers. During this strike, the Washington Post quoted Michael Trulson of News World as saying that the paper was financed by "friends of Moon--businesses operated by members of the Unification Church of America." (311) However, Unification Church International financial records at the Diplomat National Bank revealed that Moon personally directed much of the early funding of News World by transferring funds from UCI, not from businesses. (312)
News World served, when needed, as a propaganda instrument of the Moon Organization. A casual reader would not detect its UC affiliation on most days. On issues affecting Moon and the UC, however, the resources of the paper were mobilized along with other components of the Moon Organization to attack and discredit critics and investigators. One issue of News World, for example, carried an article with photographs of IRS agents auditing the books of the UC, written to suggest the IRS was harassing the church. (313) Similarly, News World printed numerous derogatory articles about the subcommittee's investigation and its chairman, including articles accusing the chairman of being a Russian agent.(314)
News World and its counterpart in Japan were not the only ventures, into the media and communications field. In July 1974, Moon had told his followers: "Even a movie company is being formed right now in Japan"(315) It was set up under the aegis of One Way Productions, with offices in Tokyo and Los Angeles. The head of this company was Mitsuharu Ishii, who, as noted, also headed Tong I1 Industry's Japanese branch (Toitsu Sangyo), was an officer in the ICF, and was involved in funding various stock purchases in
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the DNB.(316) One of the employees in Los Angeles was Robert Standard, a UC lawyer who represented the Moon factions of the KCFF in an internal conflict in 1976 and 1977. (317)
One Way Productions, like News World, was used for propaganda purposes. At the time of Pak Bo Hi's testimony, the proceedings were filmed by crews under Ishii's direction; the films were later edited and used to make a "documentary" of the hearings, shown to UC members in various locations and aired on TV stations in Korea. (318) Ishii himself was present at one of Pak's appearances before the subcommittee; later, when Pak's testimony pointed to Ishii as the source of funds for Diplomat National Bank stock purchases, the subcommittee learned he had returned to Japan. Attempts to communicate with him were unsuccessful. (319)
The Moon Organization also invested heavily in fishing and shipping enterprises in the United States. A former UC member recalled Moon speaking of "dominating the tuna fishing business."(320) In November 1976, International Oceanic Enterprises was incorporated in Virginia, along with its subsidiary International Seafood Co. The 1978 annual report filed with Virginia authorities listed the officers and directors of International Oceanic Enterprises as follows. (321)
Bo Hi Pak, president; Won Dae Chi, vice-president; Judy LeJeune, secretary; Irene Cooney, assistant secretary; and Bonnie J. Prechtl, assistant treasurer.
The directors were:
Bo Hi Pak; Sun Myung Moon; Neil A. Salonen; Mose Durst; Michael Young Warder; Takeru Kamiyama; and Joseph Sheftick.
Moon and Pak provided the initial capital through the UCI account at the DNB; later infusions of cash from UCI totaled millions of dollars. Among the disbursements made by the seafood business in its early months was $200,000 to Tong I1 Enterprises on December 27, 1976. (322)
These transactions again illustrate how the components of the Moon Organization work together as an economic unit. In the 7 month period from October 1976 to May 1977, nearly $1 million was poured into the fishing business from other Moon enterprises. The transfers from UCI were particularly illustrative since Moon--who signed the checks--and Pak Bo Hi held positions in both UCI and International Oceanic Enterprises, and Pak was president of both organizations. The transfer from the seafood company to Tong Il Enterprises in New York similarly involved taking money from one Moon Organization pocket and putting it into another.
In 1977, the fishing interests expanded with the purchase of 700 acres of waterfront property in Alabama reportedly for a fishery and ship building industry. Part of the down payment was $400,000 provided by International Seafood's account in Norfolk. (323)
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By 1978, UCI money was also being put into other businesses and holding companies, such as One Up Corporation, U.S. Marine Corp., U.S. Foods, and Il Hwa American Corp. (324)
Issues Revealed by the Investigation
As the investigation proceeded, certain patterns emerged. The various units of what came to be called the Moon Organization had overlapping directors and officers and used personnel interchangeably. They were tied to one another through joint activities, financing, and mutual use of projects. They were involved to varying degrees with the Korean Government. They carried out activities, especially political and anti-Communist ones, that conflicted with the purposes set forth in their corporate charters. Furthermore, several of these activities were in apparent violation of U.S. tax-exempt and nonprofit corporation laws, as well as U.S. immigration laws and those governing the international movement of currency. Drawing on the information relating to the individual units of the Moon Organization, this section looks at specifics of the issues summarized above: the cohesiveness of the Moon Organization; its political activities; its ties to the Korean Government; its economic and financial activities; and apparent violations of U.S. laws.
Cohesiveness of the Moon Organization
The subcommittee's finding that there is essentially one "Moon Organization" worldwide, rather than a number of separate organizations "founded" or "inspired" by Moon but otherwise operating as independent entities, is contrary to the image Moon and his associates seek to creat