Shultz’s Deputy Quits; Banker Is Nominated

Secretary of State George P. Shultz announced the resignation today of his chief deputy, Kenneth Dam, and the nomination of investment banker John Whitehead as deputy secretary, the department’s No. 2 official.

Shultz said Dam, 52, who has worked with him both inside and outside the government, will leave his post after 2 1/2 years to take a position with International Business Machines Corp. Whitehead, 63, retired recently as co-chairman of the New York investment banking firm of Goldman Sachs and Co.

Shultz said he was announcing Dam’s departure “with a sense of real loss.”

Shultz appeared in the State Department news briefing room to make the surprise announcement. He was flanked by Dam and Whitehead, but they made no comments.

Shultz said Dam will stay on until Whitehead is confirmed by the Senate. He said Whitehead met at the White House on Wednesday with President Reagan, who will nominate him.

The deputy secretary is involved in a wide range of department operations and is in charge when the secretary is out of town. Dam has held the post throughout Shultz’s tenure.