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Document Creation Date: 
December 22, 2016
Document Release Date: 
August 5, 2011
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December 23, 1976
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Approved For Release 2011/08/05: CIA-RDP09T00207RO01000030034-5 V, C.I.A.- I.T.T. UUNNFIRAC CHARGED AT HEARING, Grand Jury Is" Told They Fabricated Statements to Senate on Chile I By SE'YMOUR M. HERSH A Federal grand jury is hearing allega- tions that high officials of the Central Intelligence Agency and the International Telephone and Telegraph Corporation were involve., in a conspiracy to fabricate and coordinate'the statements they made to a 1973 Senate inquiry into I.T.T.'s role in Chile, Justice Department sources said yesterday. The son :^c, who have first-hand knowledge of the investigation, said that 'the grand jury was concentrating on the, } activities of Richard Helms, the former Director of Central Intelligence who re-, cently resigned as Ambassador to Iran, and:two I.T-.T. officials, Harold S.. Geneeiri, the corporation's president, and John A. McCone, a member of its board of -dice- tors who also served as C I At chief, front, 1961 to 1965. ; Mr. Helms was depicted by one-high! level source as the current "primary tar- get'' of the' jury, which is. meeting in Washington and is not expected to corn-. plete its investigation before the Carter administration assumes office next month. IX grand jury investigation is preliminary to any indictment and does: not noes- sarily result in one. fir. Helms could not be reached yes- terday. His attorney, i?u'ward Bennett Williams of Washington, said he would have no comment At the offices of Mr. Geneen and Mr. McCone, both were said to be out of the country. An em ph vice in Mr. McCone's Los Ange- les bus ass office acknowledgev, how.- ever, that the former C.I.A. chief had testi- fied last month- before the grand jury in connection wi : his Senate testimony. Edward T. Gerrity, a senior I.T.T. vici^ president for corporate relations, said that the concern had agreed with the Goverii- ment prosecutors in the case "not to say anything if they won't say anything." Officials said that the renewed Justice Department investigation has received specific statements and allegations about meetings at which participants from'f.T.T. and the C.I.A. allegedly - discussed and agreed upon testimony to be presented to the multinational corporations subcom- mittee of th Senate Foreign Relations Exchanges Dented That subcommittee, chaired by Senator Frank Church, Democrat of Idaho, held public hearings in March and April at which officials from the C.I.A. and from I.T.T. repeatedly testified that there had been no exchanges of intelligence infor- mation or other covert contacts between the two about Chile. Asked whether such. testimony had been prearranged, one key Government official said: "We have statements about it, but there's a lot to be corroborated." "I think it's there," he said of the Government's pending conspiracy case. In related testimony, Justice Depart- ! ment officials said, Mr. Geneen repeat- i edly told the Senate committee that I.T.T. had not made any direct contributions to any politician or political party before Chile's '970 presidential electiors. Contribution Indicated The Senate Intelligence Committee re- ported late last year t at it had learned that I.T.T., after receiving direct advice from the C.I.A. on how to proceed, for- warded $350,000 in cash to a lea6ing con- servative candidate before the ??lection. " The Intelligence Committee has turned over its records to the Justice Depart- ment, sources said. Mr. Geneen subsequently told a stock' ti holder's meeting in May that 1350,000 "may have been sent to Chile" in 1970. inforrnatiop" was. , pot consistent '. `.'with my previous knowledge."' r. ; . Mr. McCone,. asked a general' question about corporate political contributions during his testimony, deL.lared: "I think multinational corporatiuns, ' operating throughout the world, must be very very careful not to involve themselves in'the' local politics of the host country, and that is the policy of I.T.T." At the time of'the multinational cot porations subcommittee hearings in 1973,', it was not publicly knows that ? the C.I.A. had initiated. a major secret opera- tion of its own against the government of Chilean President, Saivador' Allende Gossen, spending more thin $8 million to prep up' Mr. Allende's opponents. Mr. Allende, a Marxist, whose election in 1970 was bitterly opposed by the United States Government and American corporations, died during a cop d'etat in September 1973.. Mr, Helms, who will leave his ambas- sadorial post at the end of the year, has been under intensive Justice Department investigation for two years because of his previous' Senate , testimony denying that the C.I.A. had conducted domestic intelligence and also denying that, the agency had financially supported the. op- ponents of Mr. Allende. Prose uti.on in those inquiries was not sought. in Hart because Mr. Helms sought to "cF rec." so ne of his earlier testti- mony thus blurring the record; Justice Department officials -,arid. 'at the time. The r?vitalized grand ; u' investigation was spurred, all sources agreed, by the decision of Harold V. Pendrix, former Miami newspaperman and I.T.T. political operative, to cooperate with Government prosecutors in return for being permitted 111111 to plead guilty to? a misdemeanor. charge egu? njgny before the 1973"Senate heaisring An 1 endrix, of Coral Gables, Tla.,;re- portedly. told, Justice Department investi- gate s that he had. lied about the extent, of. 11 and I.T.T.'s involvement with. the C.I. ";during the hearings. Ho. pleaded guilty, Nov. 5 to the 'mis- demeanor charge ; of "withholding infor matipn; from. Congress. and was sen- tenced on Nov. 30 by a Federal court, judg in; jvliaml to- a fine . of $1OQ and 1 three months of r}onreporting, probation. Regti