CIA COACHED WITNESSES FOR ITT TESTIMONY ON HILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09T00207R001000030005-7
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 5, 2011
• Sequence Number: 5
• Publication Date: October 8, 1978
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030005-7
--r, '/; P.1 R
VASl'I1"'i`1GTON ST?'
8 OCTOB 1918
Justice,Uept" YIJoinq "( dse
By Leonard Curry" = Court-iy s trial is on the caien-
r~~,zr, suanuw~e.e ;'. -.'?_,,darfor.Dec.4. , -
.. "r.; There is also a potential conflict if
The CIA counseled' two Interria' :.:. Fulbright had knowledge that he did
tional Telephone.'nnd Telegraph Co.. , poi?-convey. to one of his subcommit-
executives?about.their. testimony be-,;; tees'?conducting?aa investigation, the
fore a Senate subcommittee
inwhsources say. - '
they denied ITT had any. links with... Fulbright.declined.to'discuss the
the CIA, according to sources close to,-~: - matter before his' potential ap-
a Justice Department.perjury. invest,. pItt earance as a trial witness; y.= =
`""=?:-Sources ?said: the ? Justice!' Depart--
The sources-also said. said-former ' Sen : enthas.documents that_indicatethe
3: Williarm;Ftilbright;: who chaired"'"CI.3 was in,.communication-with ITT
the panel's-parent Foreign. Relations'-? b-fore and during the controversial
Cor n'iktee'a.the:tiiae-.knevratIeast=. `?hearings..The.documents are part of
a year -- andprobably three years.-- the: -department's; case.:. against two
before the hearings beganthat the`;: ITT officers.;
CIA r:raui.aiued :.lose ties withl"+ Geri ity is I1"7"s senior vice press
ITT executives.Edward .i_.Gerr.ty.?;"dent for public relations. .Berrellez, a
Tr., a id--Robe*A-Berrellez have.been~-. former journalist,' has worked under
accused of perjury for allegedly lyingGerrity- as corporate relations direc-
to tP:e ' subcommittee .-about ITTs for for South America since 1970;-
f in an cial. role in the Chilean presidena-:4:.
iialcampaign of'1970.~ =may :; GERRITY AND 3ERRELLEZ
Thee evidence "may ' prove f rouble ,denied:: to the. ;.subcommittee any
;some for a jury= considering convict'knowledge.-;of. an- alleged $1 million
I;.ion of either.,Cerrity or Berreller_. payment from'ITT, with CIA concur-.
"Can' the government- convict any irence. to political rivals of the late
body who -:' as: carrying, out: Salvador.Allende,.a socialist who was'
instructions of the-government.elected president of Chile on Oct 24
::was the- rhetorical question, of one 1970'
source? familiar"'with the?.investiga ?`tlltende died. rn a'September?I973
lion. :-?:' = "' '":= ",:' '? ; coup that replaced his government
DERRELLEZS TRIAL ' is?sched =,with a military junta. which later-
r:Ied to begin Oct. 23 rn,U.S Distract [ 'outlawed : A llende's M rxist ..
f . he junta. reported Allende commit-
, - ~..
ted - suicide,, but Allende's,;yiidow
claimed he was murdered; `
...Gerrity'-testified at_:obey Senate
hearings that'. ITT. was.:.concerned
that.Allende's anti-business and anti
U.S: platforrri in 1970 would lead-to a
a Chilean government takeover- of - ITT;
assets in the South American hation:V'`
Gerritysaid he had ."no knowI'
edge-of money being offered'L to anti-'
Allende forces ."and . it' is not; my
understanding that any -money was-.
t offered to the.CIA." . -';;.:~ ?,.:":,.
ITT; is. the :world's?`largest`manu-.,
facturer: of -telecommunications-
equipment with operations in more
than 80 countries. ITT's- investment'.
in Chile included 'a $153 million inter
est' -in .- the.. national' -telephone,'
company;. which was. only two-thirds.
protected. by U.S. government guar=
anteesagainst'expropriation.
"'The 1973 ,subcommittee'. hearings;
chaired.` by: Sen. -Frank Church,- D-?-
;?.Idahoy,and_ the Senate Intelligence
Committee" in an. investigation' two-
years later: produced evidence that'
the CIA channeled some S8 million to
'~~nct~rf~teG~ ~nnosinv 'Allende.- -and ;
that: the. CIA and` ITT.coordinated,'l
.their activities. _.:: :_:
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RICHARD- HEMS, *who was the
CIA director at. the time of the :,l - is
lende campaign,-pleaded no co:t:"sL;
last year' to two charges of lying
under oath to Congress about CIA ir.-
volvemert in the Chilean election.
:` Sources said the--Justice Deosr:-
nient's. evidence shows the CIA was
in continuous contact with ITT dur-
ing the -Church -- subcommiaea's l
-prehearing? investigation that began
in the spring of. 1912 and may even
. nave. orchestrated crucial parts of
'the:. -actual d,public1".testimony of
Gerrity and Berrellez. in: March and
.April 1973.:
The sources said"the CIA connec-
tion with ITT was also known to Ful
bright and Pat MI; Holt, a. seniorcon-
sultant- of " the-:-Foreign - Relations.
.-Committee. more than a year before'
'the:. subcommittee-:?hearin~s: Hoi!;..
now-retired, could not- be reached far-:
comment...:
-,According to:-the-sources; ?=61=1
bright ?'?-: cr ar. assisrnt.or assistari
=-:.tea.ked..dceurt-ents "to?"cclur:.nisr,
Jack: - Anderson.. whose: - newspaper
articlesin March 21 and 22, 1972, pre-
.cipitated.creation-2of the- subcornrnit
tee.andits subsequentioquir;,s_
"'Fulbright,'arr'Arkansas Democrat
-with a distinguished, 's0-year ca;eer
.:in the Senate. is now in- private law-{
.practice with Hogan & Hartson in the District.-A woman atFulbright's law:i
:
office. said. Friday, he was on. an out_
-of-town speaking engagement _
The 'senator. is -unavailablz'untilt
OcL17,"the woman said. ? ?'-
?i3UTFIITB' fC.Hf PERSONALLY.
:`answered the telephone at iiis-NorJ:i-;4
:west=-home: He-,declined to "discuss '
any. aspects of. the.TT'rn attee.. Wher-
asked'if he knew of:the CIA-cornet
- tion:'with ITT beforethe subcommit-'
-see hearings, Fu lb right repliedc;.: ,?:
:- ,';'I:think-we'd:better? not-talk aboutf'
it.'untiL --the -trial; Ws' in';'a.:fe; ;
weeks. ;._ .. , '~. -~:?..~:.'?_.~ ': "?::
~Wheri asked'.ifhe-had'provided"az;;~.
'information 'to .columnist Anderson
.`about ITT and-- theCIA;;:Ful'oright ?
said'gruffty,:."i"said--I don't care. to'
talk-about it right now."- ? ?=-' _;
Anderson said,-" No-, Fulbri;hr"did '.
--.not give me the-documents."
But -a -source.%.familiar~with
terial-::'Anderson =`received said it'
seemed - apparent ' that. ?,Fulbright{
':knew of the: CIA.=ITT-connectio r in.-
197Z,and probably?as:early as 1970-
':when.the anti-Allende campaign. was `
at its peak.
COUTENMED.
 Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030005-7
ing? the'.advice of another federal sales chief,-A Carl Kotchian' was
agency is only the first of many for a subpoenaed ? to testify before a
Justice Department task force prob- federal grand jury investigating
ing corporate overseas corruption- ? ? criminal violations including raise
The department treated a nation- statements to government agencies,
wide task force-of staff attorneys in conspiracy to defraud, mail and wire
Washington `and U.S.' attorneys in ' fraud, customs violations and inter-
cities throughout the country in the state transportation of moey ob-
fall of 1976: In the summer of 1977 the tained by fraud. ? _
task force was expanded through the . Kotchian stiffened when it became
addition of two attorneys from"the apparent that the- task f
Anderson said he would not iden-
tify his source of information nor the-
contents of the material other than to
state it originated-from ITT files and
implied that ITT'dorninated the CIA
in Chile rather than the agency con-
trolling thie corporatiorr. .
THE STICKY ISSUE involving one$
arm of the .government. prosecuting
ITT. exec utives.?:for..allegedl7fQfow-'
!!
?Securities . and Exchange Commis-'seeking a-. criminal . indictment "sion.;-which pioneered the.corpora_e against him for-activitieS that he al--t
bribery probes in 1914..' . . : ? - --, leged were 'carried- out frequently
By. the time the task force was set with C'IAcompliance:-,=
porations with-more-than than $500 million''-BOe'ng's attorneys argued wit t: the
-fin .'questionable .payments 'including :task force staff that the world's !arg-
'bribes and illegal campaigrrcontribur?::est.manufacturer of commercial air
tionsto members of Congress. _,...~~ craft was acting in the best interests
=,`:_The:task force won. a racketeering:: the United es and, soruetirnes;
conviction-against 'J Ra = M D :under U.S. guidance in payin- sates
inott &';.Co:;: a New 'Orleans-based .:commissions ao foreigrL government
:producer_* of Oil ; drilling'' equipment, ' lions als'that rnountto the men's of mil--
and the-=Mimieapolis. computer firm ]roeof.dollars:
,. ~-nwhile' U s ;t>~ ~~m an
' -Brit it.has'run into trouble'.with two -Mea s-;? re teed. techais ~r e
giant airpi3re?riarrafacturers,: Lock- ..John V. 3ames'resisted testifying be-
heed??Corp:of.Los? Angeles~?.and The fore the grand jury'o~r grow, ds,_that
. 'he was exonerated by'a prior z~re~-
Boeing-Co of Seattle. Dresser-Indus-
tries, a Dallas supplier of oil drilling.., ment with _another 'government
ancL. coal :mininequipment; ? co