Some on Inquiry Panels Also Honor Ex-CIA Chief Linked to Contra Scandal : GOP Presidential Hopefuls Back Testimonial to Casey

Republican leaders, including the party’s presidential candidates and a scattering of GOP members of Congress’ Iran- contra investigating committees, gave their support to a testimonial dinner Monday night on behalf of the late CIA Director William J. Casey.

The blue-ribbon, black-tie event, which involved hundreds of friends and government associates of the controversial Casey, was supposed to be a tribute to him and a fund-raiser for research into cancer, which led to Casey’s death on May 6.

But, from its inception, the $250-a-person dinner was controversial.

How could it be, many wondered, that GOP conservatives would honor the memory of a man at a time when Congress is still investigating whether he secretly masterminded and supervised the entire Iran-contra operation?

‘Burdens of Controversy’

“Bill’s life was never relieved of the burdens of controversy . . . . And that continues as we meet here tonight. How tragic it is,” said presidential candidate and former Secretary of State Alexander M. Haig Jr.

Max Hugel, former chief of the CIA’s clandestine operations, said Casey needed friends now more than ever. “With the firestorm brewing on Capitol Hill and in the media, something had to be done.”

Although organizers billed the Monday night dinner as an event that would separate Casey from the scandal, the Iran-contra affair pervaded the spirit of the evening.

The biggest applause by far greeted the introductions of two key witnesses who testified before congressional investigators: Assistant Secretary of State Elliott Abrams, the Administration’s point man on Central America, and Fawn Hall, Lt. Col. Oliver L. North’s former secretary. Neither spoke after being introduced.

Bush’s Name Added

The GOP presidential candidates who were listed as co-chairmen of the dinner were Haig, Sen. Bob Dole of Kansas, former Delaware Gov. Pierre S. (Pete) du Pont IV, Rep. Jack Kemp of New York and former Nevada Sen. Paul Laxalt. Conspicuously absent from the list was Vice President George Bush, although his name was later added to the dinner program at his request, organizers said.

Only Haig and Laxalt appeared at the dinner. The others sent telegrams, as did President Reagan and other national figures, including Frank Sinatra. More than two-dozen conservative members of Congress supported the dinner, including California Republican Sen. Pete Wilson.

Three members of the House committee investigating the Iran-contra affair--Reps. Dick Cheney of Wyoming, William S. Broomfield of Michigan and Michael DeWine of Ohio--were co-chairmen of the dinner. However, few members of Congress actually attended.

A controversy of a different sort involved dinner organizer Hugel, who served under Casey at the CIA for a short time before resigning.

Thirty-year CIA veteran John Greaney, executive director of the Assn. of Former Intelligence Officers, complained loudly about the initial plan to split the dinner proceeds equally between cancer research and Hugel’s conservative lobbying group, Americans for the Reagan Agenda. Greaney said this amounted to using Casey’s name for political fund-raising.

On the eve of the event, however, organizers said that, after the $150,000 overhead of the dinner was paid, the net proceeds, $50,000, would be given to cancer research.

‘An Improvement’

Greaney called the decision to support cancer research “an improvement” but added: “I’m disappointed they didn’t choose to follow (Casey’s) wishes and donate to the Nicaraguan freedom fighters.”

The Casey family has established a memorial fund to raise private contributions for the U.S.-backed rebels, or contras, fighting the Sandinista government of Nicaragua.

Casey died of complications from a cancerous brain tumor. His widow, Sophia, was the honored guest of the Monday night dinner.

Before being stricken, Casey told Congress last December that he and the CIA were not involved in or informed of the use of profits from Iranian arms sales to aid the contras.

Since then, the House and Senate investigating committees have heard a different story from other witnesses. Former National Security Adviser Robert C. McFarlane, for instance, testified that North, the Marine officer and chief operative in the Iran-contra affair, apparently took orders directly from Casey.

More recently, sources said Casey secretly turned over the agency’s contra support program to North in 1984. The pair reportedly met in secret rendezvous with rebel leaders through 1985, well after the CIA was prohibited by law from directing the program.