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Document Creation Date: 
December 22, 2016
Document Release Date: 
August 5, 2011
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October 8, 1978
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PDF icon CIA-RDP09T00207R001000030005-7.pdf237.86 KB
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...'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. _.:: :_: Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030005-7 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