Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Page Count: 
Document Creation Date: 
December 19, 2016
Document Release Date: 
September 12, 2005
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Case Number: 
Publication Date: 
October 9, 1972
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PDF icon CIA-RDP75B00380R000300100039-0.pdf198.89 KB
Approved For Release 2005/11/21 : CIA-RDP75B00380R000300100039-0 THE WASHINGTON POST ~o Z DATE 'q , PAGE By Marilyn Berger whether this relieved OPIC of washlnuton Post staff writer any liability to ITT. Sen. Frank C b u r c h (D- At the same time Church Idaho) has launched a two. has requested Elmer B. Staats, pronged effort to investigate Comptroller General of the the handling of the unsettled $92.5 million International. Tel. General Accounting Office, to ephone and Telegraph Corp. OPIC, undertake full would review include claim for government-sport- OPIC's procedures in investi. sored insurance resulting gating the ITT claim. from the expropriation of its properti.cs in Chile. Lurking behind the ques. Church, who heads the tions being posed by Church is newly created Senate Foreign the congressional power of the Relations subcommittee on purse that could withhold multinational corporations is funds from the agency if r! trying. to determine whether made payments to ITT after) any investigation has been made of ITT's political and economic activities in Chile and whether the corporation in any way "provoked" the ex. propriation of its holdings. ITT's claim . became "ma- ture" on Sept. 29 in accordance, with the contract with the gov- ernment-sponsored Overseas Private Tnvestinent Corp. which requires that the expro- prial.ory action must continue fora year. Following the Chilean take. over alleged that the corpora- tion had attempted to prevent the 1970 election of Chilean President Salvador Allende and subsequently sought cov- ert U.S, government assistance to Prevent his inauguration. In a lctt;er dated Sept. 20, Church asked OPIC's Presi dent Bradford Mills. a series of four questions ' concerning TTT's claim, specifically to de- termine whether the govern- incnt-funded insurance com- pany has carried out an inves- tigation to determine whether the alleged activities of ITT executives in Chile cbustitu-. tell a "provocation" leading to expropriation of the proper. ties. Church also has asked insufficient investigation. OPIC requested an $85 million appropriation for the next fis- cal year, which Congress has already cut in half. Also looming in the back- ground is the possibility that ITT could invoke a curious clause in the insurance con- tract that absolves the corpo- ration from responsibility for "provoking" a takeover if that action was "taken in compli- ance with a specific request of the government of the United States of America." What Church appears to be , trying to determine is whet her the threat of such a defense, which would obviously be very embarrassing to the govern- ment, in any way influenced the investigation of the claim. Additionally, there is the still unexplained tentaiive ITT subsidy to the Republican na- tional convention and its al. leged connection to the settle- ment of antitrust cases against the conglomerate corporation. This has raised' questions about ITT.'s links with the present administration. Under ITT's contract with OPIC, the insurer has six months after the claim be- comes mature to make a deter. mination on whether to pay it. ITT has repeatedly told its IstOckiolders that it antici- ' pates to recover losses, In its second quarterly report this year, ITT stated: "Subsequent to the corpora. tion's recording the claim for See,OPIC, A34, Col. 1 Apprdveb For Release 2005/11/21 : CIA-RDP75B0038OR000300100039-0 Approved For Release 2005/11/21 : CIA-RDP75BO0380R000300100039-0 K>tv?'woro. r?ayHa ?acw~ waro~w'yb row~pa.~b cs ro It o ~ ~ ftC~ .i as~su fop QO o', OZw~aeru ? a NO~ y~,o b rD wo o w m y y w C Z O O n CD ro w L3 rt m 0 rt ~l . M H y O w C (o' ~ 0 ro A. N `".. -+. C o ro ew.? v( w .~ H b n 'O p O (D Q? (yD O W N 'O Rte. O p'di `~'~ 'D 'rol N. y ? P.' 'O.."J' ' ;G-?- 0,-0 A'Ji (~ y . a" Fw., `-r" t.i. ID `^Y w 'r?rr %? ,^t 'C3 O .'Y [D n O ro M I'D ~'? 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