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Document Creation Date: 
December 22, 2016
Document Release Date: 
August 5, 2011
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Publication Date: 
September 16, 1977
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PDF icon CIA-RDP09T00207R001000030088-6.pdf169.04 KB
Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030088-6 16 SEPTEMBER 1977 A federal grand jury has report- edly handed President Carter a ticking grenade, recommending multiple-count perjury indictments against former CIA director Richard Helms, ITT chief executive Harold S. Geneen and'ITT senior vice-president Edward J. Gerri- ty. They'll be accused of having lied to two'Senate committees in 1973 about an ITT-CIA conspiracy to dock the in- stalhnent of the late Salvador Allende as president of Chile in 1970. In addition, both the grand jury and the Securities and Exchange Com- mission are investigating charges that ITt' orchestrated one of the largest fraud schemes against the U.S. govern- ment in history. Allegedly, it collected $94.1 million on insurance issued by a federal agency called the Overseas Pri- vate Investment Corporation (OPIC) to cover the 1971 expropriation of its $153 million investment in the Chilean Tele- phone Company. Attorney General Griffin Bell Edward Korry and the unspilt Chilean beans has referred the case to President Car- ter for his personal consideration on the grounds that an -unprecedented criminal trial of a former intelligence chief would expose details of the CIA's operations and national security mate- rials during the Allende years. Further juicing ^p the decision facing Carter: Henry Kissinger will reportedly be ac- cused of ordering Helms to perjure himself before the Senate Foreign Re- lations Committee in 1973, when the former director denied that the CIA had helped funnel money to Allende's opponents in the fall of 1970. The department has reportedly dragged its feet on the 16-month-old investigation because of the Helms fac- tor. Edward M. Korry, U.S. ambassa- dor to Chile from 1967 to 1971, told Justice Department attorneys in early 1976 of the ITT-CIA conspiracy to de- liver 5350,000 in ITT monies to right- wing Allende foes in late September 1970. Korry submitted a 62-page depo- sition in July 1976 to Justice's Criminal Division charging MTI' with having lied l to the Senate panels about the payoffs and the CIA connection, with defraud- ing-OPIC and with bribing Allende ad- ministration members to protect ITT's Chilean stake. Frustrated with Justice's lack of action on the case, Korry filed a S4.6 million lawsuit against Geneen and ITT this May in which he also accused Sen- ator Frank Church's Select Committee on Intelligence with having. concealed information relating to the ITT-CIA conspiracy by refusing to make public ? the former envoy's February 1976 ex- ecutive session testimony. Sources in Justice have told 'us-that the depart- ment met difficulties in obtaining from the committee cables written by Korry while ambassador that relate to the grand jury investigation. The Church committee summoned no ITT execu fives to testify.during its 1975 investiga- tion of the CIA's -covert operations abroad, and still refuses to publish the Korry testimony. A federal indictment would place Helms in the unenviable position of having to spill secret after secret about the history of CIA operations in Chile in order to save his neck; he has already begun scrambling, enlisting the aid of old friends from within govern- ment and without. Former Secretary of Defense Clark Clifford and others have made private appeals to the Carter Ad- ministration in recent months to spare Helms, and a recent column by Row- -land Evans and Robert Novak wailed that a Helms indictment and trail "would be the single most damaging thing that could be done to this coun- try-" Benjamin Civiletti, head of the Criminal Division'in the Justice Depart- ment, has indicated that the final ver- dict from-the Oval Office should come down within the next month. _ Joseph L.- Contreras Sanitized Copy Approved for Release 2011/08/05: CIA-RDP09T00207R001000030088-6