FEDERAL COURT TRIAL BANKER SAYS U.S. KNEW OF B26 DEAL IN MAY '65

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000100930006-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: January 29, 1999
• Sequence Number: 6
• Publication Date: September 28, 1966
• Content Type: NSPR

Sanitized - Approved For Relea
CPYRGHT
Federal Court Trial
anker Says U.S. Knew
Of B26 Deal in May '65
he government knew as early
a May, 1965, that a group of busi-
n ssmen was setting up an agree-
nt under which 20 twin-engined
a ack bombers were to be sent
to a European company, a Tucson,
Ariz., banker testified Tuesday in
Federal Court.
The banker, Dallas M. Coors
the Southerw-AMM-
nd Trust Co., was called by
fie government in the trial of
ree men on charges of con-
iring to smuggle World War
type B26 bombers to Portugal.
he trial is now in its second
eek before Judge John O. Hen-
_
erson and a jury of 10 men and
o women.
Under cross-examination by Ed-
n Marger of Miami Beach, Fla.,
a defense lawyer, Coors said Gor
tie B. Hamilton of Tucson, whose
f' m took the airplanes out of
othballs and prepared them for
ght, advised U.S. Customs of
ee bomber deal shortly after its
i ception. Hamilton is not a de-
f ndant in the case.
arged Act Violation
The government charges the
t ree defendants violated the Mu-
tions Control Act by exporting
s ven bombers without special
ate Department permission. At
1 ast two of the bombers are al-
1 ged to have crossed the Cana-
'an border in this area.
Hawke, maintains the Central
Intelligence Agency knew about
the bomber plan and secretly
approved it despite a U.S. Gov
ernni,mt pledge not to help
Portugal in the struggle with
rebels in the Portuguese Afri-
can colonies.
After a brief hearing without
the jury Tuesday, Judge Hender-
hen reserved decision on a motion
by Marger that would have the
government pay the costs of
bringing defense witnesses, in-
cludin?x; top CIA. officials, to Buf-
falo. Marger maintains that
Hawke is indigent.
Coors, who spent the entire
day on the stand, also testified
that he held a series of meetings
with Board, and In some cases
deMontmarin, which led to the
setting up of a $695,000 'letter of
credit to cover the airplane pur-
chases.
'Says Total Was $296,000
The letter of credit, he said,
allowed Aero Associates to draw
Luber money whenever Aera
shipped airplanes.
Eventually, said Coors, drafts
totaling $296,000 covering seven
airplanes were made.
Coors said the meetings began
in February, 1965, and ended in
mid-June when Board disappeared
from Tucson. The arrests were
made in Septmeber.
On trial are Count Henri M. F.
Marin deMiontmarin, 58, a Paris
usinessman accused of ordering
e bombers for Luber S. A., a
wiss firm; John R. Hawke, 28,
former RAF pilot now living in
t. Lauderdale, Fla., who is ac-
used of ferrying the bombers
ver the ocean; and Woodrow-W.
oderick, 47, a Winnipeg man
ow living in the U.S., who is ac-
used of executing the contract.
Indicted with the others was
regory R. Board, 45, of Tucson
ho allegedly made the deal with
uber through his firm, Acre As-
ociates Inc. Board left the
ountry before he could be 6r-
rested.
Marger, who represents'
pprovea For Keiease
FOIAb3b