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December 22, 2016
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August 5, 2011
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October 23, 1978
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Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030083-1 THE WALL STREET JOURNAL, Monday. Oct. 23, 1978 Tl TT Ai d e, 's Pe 'i ' 1 Cool F ?sClose Data on Ties A o i CIA, Chil~dns I .Worked t. osely With CIA.`-; .. . Previous disclosures have:made- It- c that ITT officials worked veryclosely I the CIA In efforts to block Mr. Allen election. But Mr., Hanke's memo is the cl est indication that-the.'CUtkneww abou leged perjury by'ITT dttlcials iramedia after it happened- And, along with a Ions of contacts betweei,.various CIA off e and various ITT offlciai9'prior to the? 1 testimony; the Hanke memo raises the q lion of whether' the CIA 'helped argan1ze . effort to mislead, the subcommittee. The case itfustrates what has becone increasingly difficult problem for theJust' Department as It seeks tnr prosecnte.Illei activities by corps rate executives and o! em abroad. ? 1: .. In such'cases, which often touch on sea tive national-security matters, the defer ate Intelligence Committee; the El Mercurio By DAVID IGNATIUS " P. 41cJJ Reporter of '?HR WALLSTRSsT JouRNAt: chain was'one' Institution In Chile which WASHINGTON =- A perjury trial' that .'was Used in a general anti-Allende effort." ' both the U.S. govern- open.: here today could prove embarasstng The report adds that ' to fl- Central Intelligence Agency and a.ment and ,ITT were funneling money into high official of-the Chilean government. " the hands of Individuals associated with the . The trial pits the Justice Department paper' during 1970 and after. apparently to - pose Mr.'Allende. N:- against Robert Berrellet, an executive of In-. OP ternational Telephone & Telegraph Corp. . In a subpoena, request flied in federal Mr. Borrellez was charged last March In a court here earlier this month, Mr. Berrel- six-count criminal information with lying to' lez's attorney, Patrick Wall, requested from a con ogressional committee and a. govern- the CIA "all documents which reflect the re- m nt agency about ITT's,role ib the 1970 lationship of,o'ne Herman (sic) Cubillos to r ;die .n election. . - - '? the agency, .Including those describing: -a) The Justice Department hopes to show actions by him on behalf of the agency, and Berrellet perjured himself when he b) communicattohe 'betweeb him and the that Mr , derte9 that ITT had worked to block the agency.' The government has asked the 1970 election of-5a',:'ador' Allende, as. presi?? coi'rt to q'lasi. that subpoena request, which Bent of Chile. But go iernment official- also =ougfiit numerous oth't CIA documents. wo ,y that this prrsecutiou-t:ould 'disclose Seals d at Goverriihent's Request-' hew details about the tangled relationships Some CIA documents have already been between the CIA, ITT and certain prominent obtained by Mr. Berreliez's attorney, but C!iileans. Scvcral Sensitive Matters , . . Court documents available to the pitbliE+ outline several sensitive matteis'that could be disclosed at the trial, including- .. + -Pentad in. late 1911 between Chile's 11 current foreign minister, Hernan Cublllos, and an. ITT official to distuss matters- re- lating to coming testimony about ITT's role In 1970 efforts to block Mr.- Allende's elec- tion: Mr. Berrellez's attorney alsohas~re- ceuestedinformation about Mr. Cubillos's con- ,act.. with the CIA.. '. V Extensi%?a diar_ussions between CIA and: TIT officials before and after Mr. Berrel- laz's alleged perjury.*One CIA document, for- example, expresses relief that Mr. Berrellez "got safely over" a 'question about his dis., "tuzsicna with a Chilean about ITT contr?ibu- tiors to a stop-Allende movement. Mr: Ber-. rel,'ez was.later charged with. perjury for these remarks. The criminal information charging Mr.; Berreliez includes a 11st of meetings between ITT and CIA officials In which a conspiracy. was allegedly arranged to obstruct a 1973 in- vestiglion by a Senate subcommittee on multinational corporations. of ITT's Involve- ment in Chile. . This conspiracy charge rites a meeting in December 1972 in New York between Harold Iiendrix, an ITT executive who was alleg- edly part of the conspiracy, and Mr.?Cubil- los. Biographical information on 'Mr. Cubil- los made available by the Chilean embassy here states that he was at that time vice president of Et Mercurio S.A.P.-Co.. a Chilt can ne+~spaper chain. ' _ According to a report on the CIA's covert action In Chile published In 1975-by the`Sen- ? vestigation, Mr. Hendrix wasn't indicted.). ? ; ; . In the alleged illegal activity. Such. tae-ti are. currently figuring. In several frireioJ bribery prosecutions. lilt IudIa :one- invol CIA document that was available from the , What's unusual about the Bertellez ca; court clerks earlier this month outlines a de-' I's- that the government's own 'crirrtln briefing of an ITT official the d:r3- after one ; charge-Is the chief source of the potential) Instance of Mr. Berrellez's alleged perjury. The document was prepared by Jonathan .G, Hanke,? who has been identified by the Justice.Department as a CIA official. In this -memorandum. dated March 22, 1973, Mr. Hanke'recounts his conversattion'the same -day,)iith ITT's Mr. Hendrix, in which Mr. Heedri 're,iewrd tire prevtois day's testl- m9ny before the'multinattunals :;ubcomm't- .`.In dislussing.Mr. Berrellez's testimony, Mr. Hanks notes "Berrellez apparently got 'safely over- the question of his discussion with Arturo Matte reported in 17 September message... . -"-This ITT metr=o recounted M Mr. ? Berrellez's' ?1970 conversation withr. Matte, an anti-Allende Chilean. In which Mr. Berrellez said ITT was "ready to contribute with what was necessary" In the effort to block Mr. Allende's election. embarrassing irifotTnation. The same pro , lem arose in the companion. prosecution Edward Gerrity, a senlor ITT executive wll will R to trial for allege l erjtiry later thl year. The Justice Department recently noti fled Mr. Gerritys attorney that It planned t drop .three-counts of that. indictment. -Thl .three counts dealt: with'-:alleged.. perjnr' about JTT'S 1970 deeltngt with executives d Hi Mercurio: An. apparently relieved Mr. Hahke noted. that "13errellez explained away the phrase 'contribute with what was ,necessary' by saying that in Spanish It has a slightly dif- ferent meaning and was essentially a cour- teous expression of concern." In its criminal charge, the Justice Department termed Mr. Berrellez's discussion of Spanish Jdiom "blatantly false and evasive testimony." Mr. Hanke's Internal CIA memorandum also notes that ITT's Mr. Hendrix had been asked by the subcommittee' whether he worked in any way for the CIA. He denied such a relationship three times. Mr. Hanke notes. (Although he Was named by the gov- ernment as a conspirator In the alleged ef- fort to block the Senate tubcommittee's In-;I-I STAT Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030083-1