FULBRIGHT PANEL SETS LT.T. INQUIRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000100110054-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: December 28, 2001
• Sequence Number: 54
• Publication Date: March 26, 1972
• Content Type: NSPR

Approved For Release 2002/01/10 : CIA-RDP74B00415R000100110054-6
NEW Yoi-,-K -Z., Es
FllL8FI6i1 PANEL
SETS Ill. INQUIRY
Investigation to Open Wider
Study of Corporate Roles
in U.S. Foreign Policy
By JOHN W. FINNEY
Special to Tho New Yonk Times
WASHINGTON, March 24 -
Senate Foreign Relation:
Committee decide l o a~ . tc
uct a major inquiry, inntc
lhq_ influence of multinational
corporations on United Stater
foreign n)oUcy.
It decided to start with an
investigation of assertions that
the International Telephone and
Telegraph Corporation sought
to enlist the cooperation of the
United States Government in
preventing Dr. Salvador Allen-
de Gossens from taking office
as President of Chile in 1970
and then proposed policies de-
signed to bring about the
Marxist leader's downfall.
To Go Beyond I.T.T. Case
As as first step, the commit-
tee voted ,to obtain by sub-
poena if necessary-all I.T.T.
internal documents concerning
Chile between Sept. 4, 1970,
when Dr. Allende was elected,
and Nov. 3 of that year, when
he took office.
To a certain extent, the
Senate committee's inquiry was
precipitated by the reports of
I.T.T.'s attempts to influence
the politics of Chile, where it
has extensive holdings.
But as outlined by Senators
J. W. Fulbright of Arkansas,
the committee chairman, and
Frank Church of Idaho, who
proposed the Inquiry, it will
go far beyond that particular
case to a broad examination of
the role of multinational corpo-
rations, their influence on for-
eign policy and their economic
impact.
The: rise of such corporations
- mostly American concerns
with extensive operations over-
ieas - has accelerated greatly
Since World War II. A sizable
proportion of the profits of
many large American com-
panies now comes from their
foreign affiliates.
The reports on I.T.T. and Dr.
Allende appeared this week in
two articles by Jack Anderson,:
the syndicated columnist. They:
were based on what he said
were letters and memorandums
from the company's files.
He made copies available to
news media on Wednesday,
enator Fulbright said the com-
mittee had already obtained
copies through newsmen.
An I.T.T. spokesman said
that until a formal request was
received from the Senate com-
mittee for all company docu-
ments concerning Chile during
the two-month 1970 period, it
would have no comment on
whether they would be fur-
nished.
No Comment on Authenticity
LJ~T. has denied that it
sr `t'o "in ere trt111Pe's
> 1il uf-1 ascTin c com-
m n the authcintic~ty of the
Anderson d c`im.
The State Department said
yesterday that the Nixon Ad-
ministration had rejected any
ideas of blocking the inaugura-
tion of Dr. Allende in 1970 or
of subsequently ousting him. At
the same time, the department
refused to deny specifically an
assertion in one of the pur-
torted I.T.T. documents that the
United States Ambassador in
Santiago, Edward M. Korry had
received a "green light" from
Washington to do everything
possible short of military inter-
vention "to keep Allende from
taking power."
Senator Church's proposal
that a major inquiry be held
was accepted without objection
by the rest of the committee,
including the Republican mem-
bers. His motion was that the
committee "undertake an yin-
depth study. of the role of multi-
national corporations and their
relationship to the foreign pol-
icy of the United States."
Board Inquiry Promised
Senator Hugh Scott, the Sen-
late Republican leader, said lie
shad "no misgivings" about the'
inquiry "so long as it is con-
I ducted on a constructive basis
and on a bipartisan basis." Sen-
ator Jacob K. Javits, Republican
l of New York, described the
study as "a very constructive
development."
The expectation, according to
Senator Fulbright, is that the
committee's study will extend
over one to two years. One of
the immediate problems con-
fronting the committee, Senator
Fulbright acknowledged, is as-
sembling a staff to carry out
the study. ,,
Senator Church',
envisioned that the sf,
~
go into "all aspects" of the
nultinational corporations, in
:luding the nature and extent`
Senator J. W. Fulbright
discussing Chile study.
of Iiriifed States lax in,~~ufi~es-
ai'd guarantccs on fnrcl?,, ill
V'P mmeats.
While the original emphasis)
in the committee's study may)
be upon the political influence'
of the corporations, both with-
j in the United States and
abroad, it was apparent from
comments by Senators Ful-
bright and Church that the corn-
mittee also planned to explore
the economic impact of the cor-
porations upon foreign coun-
tries as well. as upon domes-
tic concerns.
In effect, Senator Fulbright
observed, the committee will be
examining the validity of the
commonly held assumption of
recent years that foreign In-
vestments by American con-
cerns were "a good thing, not
only for the United States but
for other countries."
Both Senator Fulbright. and
Senator Church emphasized
that the investigation of I.T.T.'s1
activities in Chile was unre-
lated to the current inquiry by
the Senate Judiciary Commit-
tee on the relationship between
I.T'.T.'s pledge of financial sup-
port for the Republican Na-
tional Convention this summer
of their investment abroad, the in San Diego and the Justice
extent to which their invest- Department's decision to drop
meats are in the interest of the an antitrust case against the
United States, and the effect conglomerate.
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 WASHINGTON FPST.
Approved For Release 2002/01/10: CIA-RDP74B00415R000100110054-6
2 5 MAR 1972
Hilt to Probe Indtstry
On Foreign Activities
By Murrey Marder
Washington Post Staff Writer
The Senate Foreign Rela-: What produced the accord,
day to launch a long-range in- derstandings" that accompa-
vestigation into the impact of
giant multi-national companies
on U.S. foreign policy, starting
with the activities of Interna-
tional Telephone and Tele-
graph Corp. in Chile.
This will be an "in-depth"
inquiry in unexplored terri-
tory, said Chairman J. William
Fulbright (D-Ark.). A prime
objective, said Sen. Frank
Church (D-Idaho), will be to
px'amine "the extent to which
,the (American) corporate in-
k~rests in a given country might
vied what Fulbright called the
"unanimous" decision to
Church to launch the inquiry:
Committee members agreed
that there would be no hear.
ings on ITT and Chile until
after the Senate Judiciary
Committee disposes of Its
nomination hearings for Rich.
ard G. Kleindienst to be Attor-
ney General. These hearings
now center on charges that
the settlement of U.S. anti-
trust cases against ITT was
conflict with the national in- connected with an ITT pledge
terests of the United of at least $200,000 for the
"States."
I For a start, the committee
requested ITT to submit all
documents concerning its op-
erations in Chile between Sept.
1 and Nov. 1, 1970. If the docu-
Iments are not produced volun-
su
s
aries
'tarily, said Fulbright, they will election in November. This is in Ii'E stern Europe and other
~be subpoenaed. intended to assure that no one regions.
These dates include the would be hit by the unpredict- Church, a prime mover in
election with a plurality of able political fallout from an the committee's decision, said,
Marxist Salvador Allende as open-ended investigation dur-; "we expect to call corporate
h
e campaign.
president of Chile and confir. ins t
mation of his election by the Fulbright and Church indi-
Chilean congress. rectly alluded to these points
Documents made public by in their remarks to newsmen.
columnist Jack Anderson al- "This has nothing whatever
1?ge that ITT, the Central Intel- to do with the Kleindienst
ligence Agency and the State 'natter " said F u 1 b r i h t
ministration said it "rejected" cerning ITT in Chile 1'precipi-,1 devote the time and energy re-f
Republican national conven-
tion.
Secondly, no public hearings
on the long-range inquiry on
other multi-national conglom-
erate companies would be
Scott told reporters that as-
surances were expressed in
the committee meeting that
the inquiry would examine
"the benefits" of multina-
tional corporations, including
their aid to American balance
of payments. "Oh yes," inter.
jected Fulbright, "the good
and the bad."
Scott. said therefore he "ex-
pressed no misgivings" as long
as the inquiry is "conducted
on a constructive basis with
bipartisanship."
Fulbright said it has been a
basic assumption in American
policy that it is "a good thing
for the United States to en-
courage all manner of private
investment" abroad, with
guarantees, tax incentives, and
other advantages, "I would say
the purpose of this study is to
assumptions," Fulbright said,
"that growth, per se, is good."
The inquiry, he said, proba-
bly will extend to such dis-
ternational Petroleum Corp.
and Peru over expropriation
of IPC property In 1968; the
role of U.S, oil firms In the
Middle East and elsewhere,
and the role of American con-
glomerates with
b
idi
witnesses and anyone who can;
testify informatively on the
subject."
Said Sen. Jacob K. Javits .
(R-N.Y.), "It will be a very
Trough and intelligent job."
Privately, however, many
Department worked to try to Church issued a similar dis- members of the committee are'
prevent Allende from taking known to have expressed
office. claimer. doubts whether the group will
On Thursday, the Nixon ad- While the allegations con
Any "ideas" of "thwarting"
Chile's election process. ITT
earlier denied any improprie-
ties,
inquiry, Fulbright said, the
subject of multi-national com-
panies has been discussed by
committee members for a
ear
in scope as the one now pro-
jected. The committee is noted
for absenteeism, which has in-
tensified in an election year in
which many of its members'
are active.
The committee could also
encounter jurisdictional chal-
lenges in the field of econom-
ics into which it is venturing.
Fulbright said the group may
require a special counsel to
plan the highly complex in-
quiry.
election year. Appro wit a9
sa, d CIA-RDP74BOO415R000100110054-6
y
There was some initial sur- or more.
prise on Capitol Hill yesterday It will be necessary to do
when Fulbright announced, considerable groundwork, and
after a closed meeting, that no to assemble a special staff, he
opposition to the broad new said, to prepare for the ap
investigation was raised by proved "in-depth study of the
the 10 senators present, in- role of multi-national corpora-
cluding Senate Republican li
Leader Hugh Scott of Pennsyl- ons and their relationship to
vania. Some Republicans earl- the foreign policy of the
ier had indirated some mis- United States."
givings about such an inquiry "I would certainly think
by the Democratic controlled that it would take the rest of
committee In a presidential this year to get very far along