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December 12, 2016
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December 28, 2001
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March 26, 1972
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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. Approved For Release 2002/01/10 : CIA-RDP74BOO415R000100110054-6 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