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Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 22, 2016
Document Release Date: 
August 5, 2011
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Publication Date: 
August 19, 1978
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Approved For Release 2011/08/05: CIA-RDP09T00207RO01000030075-0 ARTICLE APPEARED ON PAGE A-1,12 THE WASHINGTON POST 19 August 1978 ITT. Indictment Is Cut Back By Charles R Babcock Washington Post Staff WAtOr ., The Justice Department is drop.- ping three of six felony charges against a top executive of Interna- tional Telephone and Telegraph Corp. because of fears that nation al secrets would be 'exposed at , the trial-"~'? A prosecutor told U.S. Distric# Court Judge. Aubrey;..E._ Robinson, ; Jr. yesterday-without explanation -that: the government would. not proceed' oh: three counts of. the-' indictment that accuses Edward J ' Gerrity Jr., a senior vice president of ITT, of lying. about his -firm's involvement in influencing- the 1970 presidential election in Chile.. A Justice Department spokes- . man said .;later that the three counts -are being dropped "follow- ing a?.. determination that informa tion. essential to the prosecution of those counts could not be used as evidence and made public because the protection of the information is vital to safeguard national security and U.&- foreign intelligence interests." Three substantive charges against Gerrity remain. Officials refused to say yesterday whether. they are, think ing_ about dropping the entire case. "Cases like this are- under constant review,". spokesman .Terrence ; B. Adamson said.. . ,: A similar -concern-t: about possible disclosure of top-secret information was cited. last fall, when . the. Justice Department, chose to-,let former CI k director Richard 1VL.Helms plead "no contest" to a misdemeanor change growing out of the same investigation of ITT-CIA involvement in Chile. When Gerrity and"another,ITT offi cial, Robert Berrellez, were indict in March; the Justice Department ex` pressed confidence that it' had fas ioned a case, that would: stand against expected defense demands: for access to intelligence ,documents. The first sign of the change :came late Thursday afternoon when prose- cutor G. Allen Carver. Jr. -told attorney Walter J. Bonner that the government would not prosecute his client, Gerrity, on .charges of perjury 'i'nducing anth- er ITT official to lie,. and making fal statements before a 1974 arbitration board ' considering.;. ITT_ insurance claims,,-for;, confiscated~;p~rgperty:4 ' r?~-':'Lcn,m.> f.=,,: In open court, yesterday morning, I Carver repeated that promise, though he said he did not yet have- the auth- ority to move formally to dismiss the three counts. He said the case was being reviewed "at a higher level of government" The, government declined to drop similar counts in the companion indict- ment of Berrellez during an afternoon pre-trial hearing. But the same potential' problems in- volving-defense access to. classified CIA material were-touched on by the Berrellez attorney, Patrick A. -Wall. He complained that the CIA had made .heavy -deletions on handwritten notes he had taken from documents that al- 'ready, had been censored. . "I 'cannot abide being. preventedt from preparing a defense in this case,"II Wall said, waving what he said weret .22 pages' of censored notes. "The gov- ,ernment said -there was' no-, national security in this case." . Carver:countered'that'the govern- ment had given Wall-all the'classified documents. hem-was entitled to.:But Judge Robinson .said. the defense - at- torney should return, to the. CIA and review the .documents again so he could prepare a sealed motion justi- fying his claim to their relevancy. Robinson deferred ruling on the' de= fendants' motions that-the 'the differentl counts in'the Indictment' be dismissed for legal weaknesses: But he said at the end of -the debate over access to CIA material: "The gov ernment plays games at its peril." The ITT cases revolve - around _testi- mony Gerrity and - Berrellez gave in early 1973 before the Senate Foreign Relations- subcommittee -on - multina- .tional corporations. The subcommittee `was investigating allegations that ITT collaborated with the CIA in trying to prevent the 1970 election of. socialist. Salvador Allende in Chile.. - . - Allende . won the :election but was killed' in a-, 1973 coup. d'\- Gerrity. ;and. Berrellez'=''are charged. with lying when they-said ITT did not. ,offer financial. aid to Allende's,op .,f,: Approved For Release 2011/08/05: CIA-RDP09T00207RO01000030075-0