Declassified by Author Daniel P. Douglas
The address was a small studio in Los Angeles. The year was 1957. The crew had been hand-picked by one of the most famous singers in America. The set decorator had a problem most set decorators never face. He needed to match the wood paneling, the bedside lamp, the bedspread, and the geometry of a room he had never stood in. He was working from black and white photographs. The photographs had been taken inside the Kremlin. The man who hired him was a former FBI agent named Robert Maheu. The man who recruited Maheu was the CIA’s chief of security. The room being copied was a guest bedroom inside Soviet government quarters. The actor had a latex mask of a foreign president on his face. The actress was meant to look Russian. And somewhere in Langley, Virginia, a senior intelligence officer thought this was going to bring down the leader of the largest Muslim country on Earth. This was Project Happy Days. And yes, every word of that is documented. How a Honey Trap Worked Better Than the Honey Trap To understand how the CIA ended up building a fake Kremlin bedroom on a Hollywood soundstage, you have to start in the fall of 1956. President Sukarno of Indonesia was visiting Moscow. The Soviets had reason to want him close. Indonesia was the sixth most populous country on Earth, sat astride the shipping lanes between the Pacific and Indian Oceans, and was home to the largest communist party anywhere outside the Soviet bloc. Khrushchev was already dangling a hundred million dollars in aid in front of Sukarno, hoping to peel him away from the West. But aid could be matched and promises could be broken. The KGB wanted insurance. They wanted something they could hold over him if the friendship ever cooled. So they sent a young woman to meet him. Her real name was Valentina Reschetnyk. Her codename was Lena. She was a student at the Institute of Foreign Languages in Moscow and a flight attendant on Soviet domestic flights. The KGB had decided she was the perfect “swallow,” their term for a woman trained to seduce a foreign target on behalf of the state. The KGB officer who recruited her, Yuri Krotkov, said she was beautiful, blonde, and spoke excellent English. She accepted the job. She traveled with Sukarno through Moscow, Leningrad, and Soviet Central Asia as his official translator. She also slept with him. The KGB filmed it from behind the walls of a Kremlin guest room. This is where the plan went sideways for everyone involved. Sukarno was supposed to be embarrassed. Sukarno was supposed to fold the second the Russians waved a roll of film at him. Instead, Sukarno fell in love. He wanted to take Reschetnyk home to Indonesia and make her his third wife. When her family said no, he flew a delegation back to Moscow just to see her. He took his case to higher authority in the Soviet Union, asking permission to marry her. The Soviets were running a blackmail operation. Sukarno was running a courtship. Reschetnyk got a one-bedroom apartment on Izmailovsky Boulevard, paid for by her government, so the lovesick Indonesian president would have somewhere to visit. The KGB had spent considerable resources to compromise a foreign leader. Instead, they had set him up with a girlfriend. The CIA was watching all of it. The Birth of an Idea So Dumb It Became Policy Inside CIA’s Far East Division, two officers named Al Ulmer and Samuel Halpern were paying close attention. The agency’s internal summary of what came next, now sitting in the JFK Records Collection at the National Archives, lays out the origin story in the dry voice of bureaucrats describing the world’s strangest movie pitch. In 1957, the agency learned the Soviets had filmed Sukarno during his Moscow visit and that a copy of that film had been sent to the Indonesian Communist Party. In June 1957, Ulmer and Halpern walked into the office of the CIA’s Director of Security and pitched the idea. If the Soviets had a real film, the United States would make a fake one. Not a different scene. The same scene. They would simulate the same affair, in the same room, with the same kind of woman, and they would somehow leak it in a way that humiliated Sukarno before his own people. The thinking went like this. Sukarno’s reputation as a womanizer was so well established that nobody in Indonesia cared who he slept with. The CIA needed a different angle. The angle they landed on was that Sukarno had been outsmarted by a Soviet woman working for the KGB. The agency’s logic, recorded in the memoir of CIA officer Joseph Burkholder Smith, was that being seen with mistresses was fine in Indonesian culture, but being tricked by one was a humiliation a man could not survive politically. This was a theory of foreign cultures held by men who had never been to Indonesia, written down in a memo, and approved. Enter Robert Maheu, Professional Doer of Strange Things The CIA needed someone who could get a film made without leaving CIA fingerprints anywhere near it. They had a guy. They always had a guy. Robert Maheu was a former FBI agent who ran a private firm called Robert A. Maheu Associates. His main client was Howard Hughes. His side gig, increasingly, was the United States government. In 1956, before the Moscow trip ever happened, the State Department asked Maheu to handle security checks for a list of prostitutes the U.S. government planned to provide to Sukarno during his official visit to America. The plan called for a different woman in every city, all ten cities, until Sukarno flew home satisfied and pro-American. Eisenhower toasted him at a state dinner. Behind the scenes, Maheu was quietly running background checks on the call girls. That program failed. Sukarno enjoyed himself but went home angry about other things, mostly the West New Guinea territorial dispute. So when Colonel Sheffield Edwards, the CIA’s chief of the Office of Security, knocked on Maheu’s door in Falls Church, Virginia in July 1957, Maheu knew something bigger was coming. The two of them sat down in Maheu’s basement rec room, decorated with what Maheu later described as a nautical theme. There was a bar made from half of a real lifeboat. There were lamps made from driftwood. There was an entire wall of cooking equipment for clambakes. Two senior figures of American intelligence were about to plan an international propaganda forgery while sitting next to a wall of lobster pots. Edwards opened an envelope. He laid photographs on the table. The photographs showed the inside of sleeping quarters in the Kremlin reserved for visiting heads of state. Edwards explained where the pictures had come from and what had happened in that room. Then he made the ask. Maheu would need to find people in Hollywood who could build a set that matched those photographs. He would need to find a woman who looked like the Soviet agent. He would need to find a man who could be made to look like Sukarno. And he would need to film a scene in the replica room, framed and lit to look like surveillance footage taken by the same kind of hidden camera the KGB had really used. The CIA was not making a porn film. The CIA was forging a Soviet intelligence product. They wanted Americans to make something that looked like the Russians had made it, capturing an event that had not actually happened, in a room that did not actually exist. They were counterfeiting espionage. Maheu, who two years later would be running the CIA’s mob-backed assassination plots against Fidel Castro, said yes. The Crosby Connection Maheu went to Howard Hughes for recommendations. Hughes had been in the movie business so he knew people. Hughes gave Maheu two names. They were brothers. The agency’s Office of Security ran background checks on both of them. The brothers cleared. Their politics were also acceptable to the agency, which was a relevant consideration when entrusting someone with what was technically a federal counterintelligence operation. The brothers were Bing Crosby and Larry Crosby. Yes. That Bing Crosby. The man who sang “White Christmas.” The crooner. The face of mid-century American wholesomeness. According to multiple sources including Evan Thomas’s book on the early CIA, the Crosby brothers were the producers Maheu hired to make the fake Sukarno tape. Bing’s connections in Hollywood went deep enough that they could put together a quiet shoot in a small studio without raising eyebrows. His brother Larry handled much of the front-line work. Together they were going to deliver the United States government a counterfeit Russian sex tape starring a man in a rubber mask. The man in the rubber mask was, according to the same source, a bald Mexican-American actor. The casting choice was specific. Sukarno was vain about his receding hairline and almost always appeared in public wearing a black traditional Indonesian cap. He was, however, presumed not to wear it in bed, which is the kind of operational detail you find buried in a footnote in a Cold War history book and have to read twice. The actor had to be bald, because the latex mask of Sukarno would need to fit smoothly over a bare head. The forgery had to account for the absence of a hat that the real Sukarno would have removed in the privacy of a Soviet bedroom that did not exist. The actress had her own casting brief, and it was no less specific. She had to be blonde, because Reschetnyk was blonde. She had to look Eastern European enough to read on film as Russian, because the whole point was that the audience was supposed to believe a Soviet camera had captured a Soviet woman in a Soviet bedroom. She had to be willing to perform the scene knowing it was for the United States government, knowing she would never be paid through normal channels, and knowing she could never tell anyone what the job had been. Her name has never been made public. She has never come forward. She is one of the most obscure performers in American intelligence history, hired to play a real Soviet woman in a fake Soviet recording of an event that did not happen, and she did her job well enough that nobody has identified her in nearly seventy years. Set builders studied the Kremlin photographs and rebuilt the room in Hollywood. The lighting was angled to mimic a hidden camera. The shot was framed like spycraft, not like cinema. They were, after all, supposed to be making a Soviet surveillance film, not a Hollywood production. Somewhere in the middle of it all, the most popular singer in America was probably reviewing dailies. The Movie Nobody Wanted to Watch Project Happy Days produced a film. It also produced still photographs taken from the film, which according to author John Ranelagh in his book “The Agency” were intended for distribution in the Far East. What happened next is the part of the story that historians and former agency officers cannot quite agree on. CIA officer Joseph Burkholder Smith, who served on what he called the “special Sukarno committee,” wrote in his memoir that he never tried to use the product of the operation. The film and the photos sat. The plan to spread them around Asia, to leak them in ways that would humiliate Sukarno, fell apart somewhere between conception and execution. Maheu, in his own later writings, claimed the film had some impact, that Sukarno’s standing in Indonesia “was never the same again.” Other writers and former intelligence officers say the opposite. Some say the rumor itself spread enough to qualify as a partial success. Some say nothing happened at all. What we do know is that Sukarno remained president of Indonesia for nine more years. He continued his policy of nonalignment, continued to accept Soviet aid, and continued to defy American foreign policy goals. He was eventually pushed out of power in 1966 not by a sex tape but by a violent coup led by General Suharto, which the United States supported through far more conventional means. We also know what Indonesians thought of the rumors. Authors Kenneth Conboy and James Morrison concluded that in much of the developing world, the story of an Asian leader sleeping with a beautiful European woman was not a humiliation. It was, in some quarters, a point of pride. The CIA had constructed an elaborate insult based on values that did not transfer. The agency had built a Kremlin bedroom in Los Angeles, hired one of America’s most famous singers to produce a counterfeit blackmail tape, and learned that their target’s voters either did not believe the tape, did not care about the tape, or thought the tape made him look pretty good. The Pike Committee Sees the Receipts The story should have died in classified files. Project Happy Days survived, partly because it had been documented by the people involved and partly because, in 1976, the United States Congress decided it had finally had enough. The House Select Committee on Intelligence, chaired by Otis Pike, was investigating CIA misconduct. Their final report contained one sentence so dry and so damning that it has been quoted ever since. Taxpayer monies, the committee wrote, were spent to provide heads of state with female companions, and to pay people with questionable reputations to make pornographic movies for blackmail. That was Congress’s official, sanitized summary of Project Happy Days. The line is buried in a longer report on agency abuses, sandwiched between findings about assassination plots and domestic surveillance. The committee found the operation insane enough to mention, but not insane enough to be the headline. The internal CIA summary of Project Happy Days now sits at the National Archives as part of the JFK Assassination Records Collection. The records were released to the public as part of the rolling declassification of JFK files in 2017 and 2018. The film is gone. The photographs are gone. The set was struck. But the memo describing all of it survived, because the agency could not stop itself from writing things down. What This Operation Tells Us About the People Running the Show The story of Project Happy Days is funny on its surface and grim underneath. The funny part is the movie itself. Bald actor in a latex mask. Hollywood set builders working from KGB-style photographs. Bing Crosby’s brother handling the dailies. The CIA’s senior leadership genuinely believing that a forged sex tape would be the wedge that brought down a head of state. The grim part is what came next. The same agency that thought a Sukarno-shaped rubber mask was going to win the Cold War in Asia would, in 1958, launch a paramilitary rebellion in Indonesia. That rebellion failed too. American pilots were shot down. American weapons were captured. American denials were proven false. Then, in 1965, a coup against Sukarno’s government produced one of the worst mass killings of the twentieth century. American officials supplied lists of suspected communists to the Indonesian military. Estimates of the dead range from five hundred thousand to over one million. Project Happy Days happened first. It was the dress rehearsal. The Crosby brothers’ fake Kremlin bedroom was the same agency, run by the same men, using the same logic, that would later help facilitate one of the great atrocities of the twentieth century. The mask and the killings came from the same building. The Verdict The film does not exist anymore. The set was torn down decades ago. Bing Crosby went on selling Christmas records and never spoke about the project. Larry Crosby kept his brother’s secrets. Robert Maheu told a sliver of the story under congressional oath in 1975 and the rest in his autobiography years later. Sukarno died in 1970, under house arrest, four years after Suharto’s coup pushed him aside. He never saw the CIA’s tape. As far as anyone has been able to confirm, neither did anyone else. What we are left with is a memo. A government memo, written in the careful sterile prose of an intelligence agency summarizing its own work, describing how in 1957 the agency built a Kremlin bedroom in Hollywood, hired the most famous singer in America to produce it, dressed a man in a latex mask, and shot a counterfeit Soviet surveillance tape that nobody would ever see, in service of a foreign policy goal it would not achieve, against a man it could not embarrass. It was Project Happy Days. The name on the file is real. The receipts are at the National Archives. And somewhere in the warehouse of American secrets, behind a row of cabinets full of mind control files and assassination memos, there is a folder that explains, in measured government English, exactly how taxpayer money paid to build a fake Kremlin in California so that a bald man in a rubber face could pretend to be the president of Indonesia. In bed. With a woman. The film is gone. The mask is gone. Sukarno is gone. The men who approved this operation went on to plan worse ones, and the worse ones worked. Welcome back to the shadow history of American power. The credits never roll. Thanks for listening to the Declassified podcast. This post is public so feel free to share it. Subscribe for free to receive new posts and support my work. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit authordanielpdouglas.substack.com [https://authordanielpdouglas.substack.com?utm_medium=podcast&utm_campaign=CTA_1]
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