EX-U.S. ENVOY TELLS OF '70 OFFER TO CHILE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09T00207R001000020089-6
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 9, 2011
• Sequence Number: 89
• Content Type: OPEN SOURCE

13.tt now Approved For Release 2011/08/09: CIA-RDP09TOO207RO01000020089-6
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Act and to observe it both in' As an example of current:
spirit and in letter." credit. "That's really spread.
? Ask the Democratic and tional health insurance, Medi-
Republican leadership on Cap- abuse,.Gardner cited a report
it
proposals ol Hill "to draft legislative that political affiliates of the
c
subversion of he1electoral have American
c ntrib tons
isince
process through espionage and the 1972 elections to almost i
sabotage." half the members of the
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in a review of the charter of of the AMA's proposal for na-
every secret police and intelli-;ing the fertilizer around," he
gence activity in government, I said.
i
Ex- U.S. Envo Tells
Of 17 "ff -3* 40 C I --r i
0 & es L attel
By Adolfo G. Merino
Special to The Washington Post
The Nixon administration H
a
said Washington had l
offered Chile "an incredibl
Y proposed to underwrite Chi .1
generous economic pack,
l
in 1970 to enable the former
government of Marxist Presi.
dent Salvador Allende to com-
pensate three nationalized
U.S.-based firms, it was
ean bonds with "the full faith
and credit of the American
Treasury, if the Allende re-
gime would negotiate a settle-
ment with ITT and the two!
copper companies." 1
The U.S. offer was disclosed
by Edward Korry, former U.S.
ambassador to Chile, who said
Allende rejected it. Korry also
said the United States refused
Korry said Allende rejected
the offer "for ideological rea-
sons," fearing that he would!
have lost support for his;
Marxist-Socialist government
a request from Allende fora ...; ?e p Irom the
1 lli i United States.
MA on contribution to his
1970 presidential campaign.
Korry made the statement
at an Aug. 15 seminar at
Georgetown University. UPI
obtained a copy of the state.
ment in the wake of a disclo.
sure that the Central Tntelli-
Allende felt, Korry said,
"'that if he accepted the deal -j
and he told me this himself-
there would be no 'Chilean
revolution' ."
Korry said that during the'
gerice Agency secretly funded I tions, the U.S. embassy was
efforts to "destabilize" the Al-j approached for contributions
lende government. by "high-level fund-raisers" of
President Ford, who on iVlon all three candidates. He said
clay acknowledged CIA activ ! :~llende's fund-raiser asked for'
ity in Chile, has called top S1 million.
congressional leaders to the "The U.S. government made'
White House today to discuss! no contributions to any of the
whether such covert opera-1 candidates," he said. "This was,
tions should be abolished. a departure from the policy of
Korry indicated that Al.!the Kennedy and Johnson ad-
lende, who died in a military; ministrations which, during,'
coup last year, received the of- the campaign for the 1964 Chi
fer from the Unitd States in ! lean election, provided consid-
early 1971 after his govr'rn- erable support for the election
ment had nationalized the Chi of President (Edurardo)
lean operations of three U.S.- Fredi."
based firms, international Tel. 1 Korry said the United
eiihone and Telegraph Corp. States had infiltrated the lead-
and two copper companies- ership of Chile's Communist
Anaconda and Kennecott. i and Socialist parties. "We
"To reach an accommoda.'knew exactly what their inten-
tion," he said, '-the U.S. of. tions were toward U.S. invest-
f^.-d Allende a deal which' meats when they came to
could only be described as the' power . .. but we were pre
pzc':ag.a we have ever offered try to reach some kind of
any government in an eco- aree.-nent with Allende," he
nomie relationship." said.
1970 Chilean presidential elec-1
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Approved For Release 2011/08/09: CIA-RDP09TOO207RO01000020089-6