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Document Creation Date: 
December 22, 2016
Document Release Date: 
August 16, 2011
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Publication Date: 
January 20, 1982
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PDF icon CIA-RDP09S00048R000100020061-4.pdf226.62 KB
Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4 By John Dingee=and Saul Landau ' WASHINGTON'-The key government wit- ness in the cxi zinal case against two former CIA agents accused'ofproviding terrorist. training and .equipment to;Libya?has"-' alleged in'act interview that the same:*agents'sold..banned'weapons and electronic devices'to'the Chilean secret police in 1976, with the knowledge of senior CIA officials. =The witness,. Kevia,P:,.Mulcahy.; is.a former CIA employee , himself:: and; former business as- sociate. of the;. two.fugitive ex-agents, who-. have been. under indictment-since April 1980. Mulcahy said ' that he attended a July, 1976. meeting, in,, a Washington. townhouse is Which Co!.,Manuel Con- treras, head of Chile's intelligence service,. DINA, discussed his needt,for..handguns, sophisticated electronic security equipment and_a-small? balln .22-caliber round or, a, pellet of poison. '4 Theemeeting was organixed,.Hr1Y[acahy said, ;try j has been-the focus of 'a-, Justice Department inve? .tigation? into the=transfer of explosiveai timers,; ,Libyan leader. uammar='Khadafy ,,Wilsowand: Aprar 1980 oy'a. Washingtonx-D.C.; ' ederal `grand: jury 'for th s. . - . e1r ge llleg is Irs addition Terpil'tias:been: con ' cfed ia: ab= . sentia in New York -foe selling: machine guns; to ' undercover police:::detectives. 'Ha was~indicted, tions beginning,'in,=1977' to'Uganda's';deposed strongman:, Iii' Am4 l~i l 's - ` u cahy account of thes rct ?upponract to Chile for the fti t time broadens- the- sco of beyond 'thetw cal.Africars:., ons de L e:rail -riati ns;;toinclude u The tixningof'Contreras' meeting;in Washin July' `.also'is:. _f "scant for ano hev. me nth _; assassination in Washington Sept. 2! f 76;. of. ex- sassination ploEmotion'=in iClifIe>~ia the last Washington.' Letelier and:. n Asia OAKLAND TRIBUNE (CA) 20 January .1982 :.I~: -''?'"?,.,L..??~jp"":'La,.;'.`"'.'."-w!w-r-?.. ~,,,.r..Y.~.,,,,... ,..~.,,~..,.~?1r~,:.... 1'.: ~Ir?, rior, to 'hisv?allege trip; to can, wouaaii;`Roiiiii 111loffitt; The Mulcahy- account also 1a. significant be- cause: 'he said he-believed he, Wilson and: Terpil' were working with th-_ full knowledge and cooper- -ation' of the CIA. -In previous interviews, Mulcahy has said that. he got that impression' because of Wilsoe's's'close association_-with.`.Theodore G. Shackley the lqo: 2: it sn i;r the'CIA.'s clandestine 'service. at the time, and with Thomas. Clines;. the :. CIA' s' training chief' at the'time Both` agents also have been named by another government witness., 'Douglas-M Schlachter;ias.having?endorsed Wilson and .Terpil's alleged' involvement= fir- terrorism training in Libya:" The 'CIA has consistently denied-'a ny Institu- tionaI`recognition of Wilson and':Terpil's'.opera- tions? and has produced- evidence= that '.It'inotifled JusticeDepartment-and'FBI officials-inxniediate ly. . upon learning- of their-'allegedly-illegal activi- 'ties_pv?rseas. top CIA bfflcsals.who haverinvestlgatei the.Wilsoit-Terpil,case have conceded-. that-. the so.;, called ;'rogue". Yoperation was aple-:ta' flourish 'because of close relationships that continued be- freeir- the formery.agents.. and - active:duty-- CIA Mulcahy's account=of the Chilean arms trans action was confirmed by documentsdrawn ?up for, .. the,saleytand' the Treasury,.Departr ment's Bureau-of-Alcohol, Tobacco. and.Fire Thesei 'documents inicluded invoices'. and .bills' of sale??drawn :up .bygone- of: Wilson. and..Terpil companies, Inter-Technology,. Inc-The purchase listed on. the document as-Renato?Sepulveda-' of Universal Export- Co. ' in Santiago, was identified by_- federal investigators as. a suspected DINA: :.front-organization' in-Chile:~-^* -: The sale to: Chile of arms and.-intellige equipment, such as. thatlisted. oitthe:invoices and' described by Mulcahy, ' was-prphibited'by- legisla tion, passed: earlier in 1976' in response~ to dcnun- ' ciations-'o;, _ rampant human -rights'. olations, by ,,Chile's mllitary ~goverument" , s,E :*'; ;-`Mulcahy' said Terpil'brought tiling. and another, business associate.-a'.former navraL'?.:intelligen '. F':officer; to?the. meetingion'a. rainy Friday after moon- In 'a? northwest?:Washington;,Rouse'on, I : hStreet- that':. he'said looked:like`,"ai=typical"CYA`, ..safebouse... He was-Introduced to=alieatryset sianj r identified:as'Manny_';Contreras Sepulveda and al secori&Chilean whor acted as - fnterpreter,: and? I wfiose name he does not- Terpii.. was3'`defereotlal". to Cantesas MuI "'cahy said. "I,had seen Frank slap: hands of state,, on the back but-with this guy he-was:downright espegUul,: pnrl; kept-his,voioa- doves; CONS _ - e Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4 Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4 i' "'?ntrera, Mulcahy said. wanted to discus.' thw-, tails of an "integrated security system" - a variety of devices to secure an embassy or gov- ernment offlce.,They. described to. him items they) could supply, such. as card readers,. pinhole cam- eras, telephone, bugging devices and digital scan.I ners to monitor telex traffic. A purchase?? order signed by Mulcahy lists what federal investigators believe was the equip- ment ordered by the Chileans. Among the items were "trans-ceivers," "wireless inductor ear- phones" and, "micro-mini microphones"--all used in surveillance and bugging. The sale cane to Mulcahy. said Contreras also wanted to ' ar- range purchase of Colt "Cobra" handguns, an easily concealable, high-quality revolver that can ,be. fitted.,with.a. silencer-A. "pro.?forma- invoice dated July % 1976, describes the terms of sale of 1,000 Colt..Cobras and one million rounds of am- munition ..tO Universal. Export;-with- payment of $368,089 inrletters of credit to Inter-Technology., the -Wilson,Terpil firm. of - which' Mulcahy, was president; Another'tapic f: th& meeting;. Mulcahy- said. was the-' device known ia= the clandestine 'a trade. as:a?: "Parker"' an assassination weapon disguised as a push-button pen. The device; which is. not.; mentioned in any,,of the -documents, -,is ',capabl*_of- firfng.~'a:'single .22-caliber. bullet "acrossPirlirncf;$able," Mulcahy said, and' can be made,lethal-by=loading the projectile ?wiiyan= ide compound orrother poisons.' `Pacific rvfce correspoadenL John Ringer specializes in national security issues. Saul Psad:p Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4