C.I. A. APPARENTLY PLANS CUT IN SOME COVERT ROLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77-00432R000100130001-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 41
• Document Creation Date: December 9, 2016
• Document Release Date: June 20, 2001
• Sequence Number: 1
• Publication Date: April 2, 1973
• Content Type: NSPR

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CONFIDENT! L
NEWS, VIEWS
and ISSUES
INTERNAL USE ONLY
This publication contains clippings from the
domestic and foreign press for YOUR
BACKGROUND INFORMATION. Further use
of selected items would rarely be advisable.
No. 33
10 APRIL 1973
Governmental Affairs. . . . ? . . . Page 1
General . . ... ... . 0 0 . Page 19
Western Europe. . . . . . Page 24
Near East ? 000000 0 0 0 Page 29
Africa. 00000 0 30 Page 30
Far East. .. 0 0 .0 . . . . . . . Page 31
Western Hemisphere. 0 . .
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CONIFIDENn L
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NEW YORK TIMES
2 April 1973
C.I.A. Apparently Plans
Cut in Some Covert Roles
By CLIFTON DANIEL
speela te The Nei, York Timoil
WASHINGTON, April I? been given the authority to
Under Its new director thei
put it into effect. He got the
job because as assistant direc-
tor of the Office of Manage-
ment and Budget and later as
chairman of the Atomic Ener.
gy Commission he earned a
reputation for efficiency and
effectiveness.
Apparently Mr. Schlesinger
Is expected to do in the Intel-
litence community what ? other
recent Preaidential appointees
have been instructed to do in
more open departments?that
is, to make the Federal bu-
reaucracy more responsive to
the Administration.
This objective has led to
charges from some old hands
at the C.I.A. that the agency
is being "politicized" by the
Nixon Administration. Mr.
Schlesinger met this charge,
when his C.I.A. . appointment
was up for confirmation in the
Senate, by assuring the Senate
Armed Services Committee that
he believed absolutely in main-
taining the integrity and inde-
pendence of intelligence esti-
mates.
People who know President
Nixon's attitude say be wants
his intelligence information
straight even when it is un-
palatable. However, the White
I16use does want to see less
money spent on intelligence,
and a better intelligence prod-
uct provided.
By a better product the
White House apparently means
among other things a product
that answers the questions that
senior policy makers are inter-
ested in and gives the answers
in brief and readable form.
"You can't drop a 90-page
C.I.A. analysis on a high offi-
cial's desk and say 'You've got
to read this,'" one such official
said recently.
That Discouraging Thud
"The thud it makes when
It falls on your desk is enough
to discourage you from open-
ing .it," another said.
Apparently C.I.A. memoran-
dums under the Schlesinger re-
gime will number more like
three pages than 90 and will
have a telephone number to
call if the recipient wants fur-
ther information.
While seeking greater econ-
omy and efficiency the intelli7
Fence community is reassess-
ing its tasks.
'There appears to be a ten-
dency to cut back on C.I.A.
paramilitary -operations ? op-
erations such as the abortive
? Bay of Pigs invasion of Cuba
in. 1961 and , the clandestine
war still being waged in Laos,
operations ' that have some-
times brought the agency as
much censure as praise.
In his second -Inaugural Ad-
dress, President Nixon said,
"The time has passed when
Central Intelligence Agency is.
apparently planning to curtail
some of its old activities, ? no-
tably clandestine military oper-
ations, and undertake some new
!ones. These include action
against political terrorism and
the international drug traffic.
Since James R. Schlesinger
took over as director on Feb. 2
more than 1,000 employes of
the C.I.A. have received dis-
missal notices. Mr. Schlesinger
also has authority from Presi-
dent Nixon to apply what one
official calls "a great deal of
persuasive influence" to reduce
manpower as well in the
mill-
tary intelligence services. These
are the Defense Intelligence
Agency and the National Secu-,
rity Agency, which Mr. Schle-
leinger oversees but does not
loperate.
In the last two years the in-
telligence establishment as a
whole has been reduced by
something like 25 per cent, ac-
cording to reliable estimates.'
In 1971 there were more'
than 150,000 people in the mili-
tary and diplomatic intelligence:
services and the C.I.A. There
are now fewer than 125,000, ac-
cording to the estimates?per-
haps \no more than 115,000.
Since November, 1971, the vari-
ous agencies have been under
orders in a memorandum from
the President to reduce dupli-
cation of facilities and func-
tions and make more economi-
cal use of their resources, es-
pecially in collecting informa-
tion.,
?
Intelligence information these
-
days is gathered more by ma-
chines than by men?by satel-
lites and computers rather than
by spies meeting informers in
bars and alleys.
Each intelligence agency
seems to want its own machines
and some systems have report-
edly been made deliberately in-
compatible so that each agen-
cy keeps its own.
For that reason and others
it is said here that President
Nixon's 1971 memorandum has
as yet had no measurable ef-
fect on the operations of the
Intelligence community.
The man iirincipally respon-
sible for drafting the Presi-
dent's memorandum was Mr.
ApprovediPteggMiWATAYORI
Schlesinger. and he Itas now
er nation's conflict our own,
,Or make every other nation's
future our responsibility, or
presume to tell the pent* of
other nations how to manage
their own affairs."
That statement seemed to
Imply less intervention in oth-
er people's affairs, whether by
Intelligence agencies or other-
wise. ,
In any event, operations such
as the one in Laos, where the
.C.I.A. has long given support
and leadership to the anti-
Communist military forces, are
on such a scale that they can-
not be conducted secretly, and
thus may not be thought suit-
able for an undercover agency.
'Dirty Tricks' Wane
Operations on a smaller
scale?sometimes called "dirty
tricks"?Teflect the atmosphere
of the nineteen-fifties, the cold
war period, and seem to be
regarded now as obsolescent.
Also with the reduction of
International tensions and sus-
picions, which is the aim of
President Nixon's dealings with
the Soviet Union and China,
the intelligence community may
not need to pay so much atten-
tion to the military abilities
of the major nowers.
-However, there may be new
,rtasks for the intelligence com-
munity in an era of negotia-
'
tioFtiOr example, the protocol to
the Soviet-American agreement
on the limitation of strategic
offensive weapons provides in
Article 12 that "for the pur-
pose of providing assurance of
compliance with provisions of
this treaty, each party shall
use national technical means
of verification."
In plain language, that means
that the Soviet Union and the
United States may each use its
own photographic satellites and
other intelligeece-collectint de-
vices to see whether the other
side Is abiding by the treaty.
This is the ."open skies" policy
' proposed by President Dvilight
D. Eischnower at the Geneva
summit conference in 1959 and
relecleri at that, time 14 the
Russians.
There are also other new
problems to attract the inter-
est of the intelligence agencies.
One is the narcotics traffic.
Intelligence is 'a major ingredi-
ent in controlling it.
Another is political terror-
ism, a form of warfare that
,cannot be dealt with by ordi-
nary diplematic means or -con
ventional military forces.
The interest of the C.I.A.
in ,these problems does not
mean ?that the agency will no
longer have an arm that can
perform paramilitary functions.
,It also does not mean that
the C.I.A.?to use a term hear
here?mill not "invest" funds
in the affairs of third coun-
tries on occasion.
1
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:1TA n
;r1 11-irch 1?73
By JEREMIAH O'LEARY
? Sttit?tftiiii Sinit
The existence of ?a hitherto
secret CIA propaganda fond of
e4000e0 for use in the Chilean ?
presidential election of 19';(0
has been brought to light by
the Senate multinational cor-
porations subcommittee inves-
tigating the role of ITT and
;the U.S. government in Chile's
4nternal affairs.
I It has been learned authori-
tatively that the fund was pro-
vided by the CIA for the peri-
od prior to the popular election
on Sept. 4, 1970, WI1CTI Marxist
candidate Salvador Allende
won o hairs-breadth plurality
in a three-man race. But in-
formed sources believe, and
former Ambassador Edward
Korry testified yesterday, that
ell agencies of the U.S.. goy?
ernment adopted a hands-off
policy in the Oct. 24 runoff.!.
which Allende won i the Chi- I
lean Congress. ?
Jerome I. e 'v inso n, chief
counsel for the subcommittee
headed by Sen. Frank Chinch,
D-Idaho, injected the $400,000
propaganda fund into the hear-
ings with a direct question to
Kerry, asking the ex-envoy if
there was such a covert fund
in the pre-election period. Kor-
rysaid that was a question the
CIA would have to answer.
But Korry also testified that
everybody in Chile knew the
U.S. government wanted to
see Allende 'defeated and that
only a lunatic weuld have sup,
posed otherwise. Ile said he
personally favored the so-
called Alessandri formula by
which the Christian Demo-
crats and Conservatives in
Congress would combine to
elect Jm-ge Alessandri instead
of Allende: The formula, which
never was applied, then 'called
for Alessandri to resign so
that outgoing President Ed-
uardo Frei could Win in a new
national election.
Allende had won a plurality
? but not a majority ? in the
popular election of Sept. 4,
1970. This put the election in
the bawls of the Chilean Con-
gress, which selected him On
Oct. 24, 1970.
0 CI Fund to Influenc
Chile Election Reporte
Committee fmembers and
aides refused to divulge more
about the $400,000 fund, but
Kerry's testimony left no
doubt that it could harve been
used only to finance propagan-
da to help defeat Allende. It
could not be learned whether
the fund is Mentioned in the
Impounded testimoney given
yesterday in executive session
y William V. Broe, who was
m charge of CIA clandestine
operations In Latin America at
the time of the election.
The Subcommittee was to re-
lease the Ilroe testimony today
after screening by CIA offi-
ciate. It was the first time In
bietery that a CIA agent has
ever testified under oath be-
fore a congressional contnit-
tee.
'the sizbeciaminiltee also re-
leased yesterday an internal
ITT docninent describing a se-
trot meeting Oct. 214 1971, in
the office of Secretary of State
William P. liogett with repre-
sentatives of a number of
Amenican corpond ions threat-
Oned with exporopriation in
Ctile. The memorandum says:
"Secretary IlOgers opened
the meeting by saying that he
and the President had grave
concern over the Chilean situ-
ation and the expropriations
that were taking place. lie
stated there appeared to be
little leverage that the govern-
ment could use against Chile
but that they would take all
actions open to them.
"Ile discussed his meetings
With Foreign Minister Almeda
(Clodomiro Almeyda) during
the opening of the 1114. Ile stat-
ed he had never been more
2
(nude to any other diplomat. It Is obvious from the histo-
Rogers said he attempted to
mess Almeda (Almeyda) to . ry of Chile since the Allende
election, Korry said, that the
stop the copper expropriations , United States mounted no "hig
and filing of excess profits and.,:, ? push" and supported none of.
taxes." the three candidates.
? Earlier, Kerry declined to. "All three camps imp-
tell the subcommittee, either ;
;preached me for funds, but the
In open or executive session, I.S. never responded," Korry
what instructions he received ,testified. But when Levinson
from the State Department asked him about the CIA prop-
during the critical election pe- ?? agenda fund, Kerry refused to
answer any questions about
?
rind in Chile.' Korry told s
Church he was net invoking.
the CIA except to say that the
executive privilege, although agency was under his control
be 'understood there was legal i ? ? ? in Chile. The subcommittee
did not pursue the former am-
bassador about the seeming
discrepancy when lie cut off
all questions about the CIA.
Kerry declared that he per-
sonally favored the Alessandri
formula for blocking Allende's
election "but I did nothing
about it." However, he said he
did tell U.S. businessmen in
Chile that he favored the plan,
explaining, "There is a differ-
ence between analysis and ac-
tion."
Asked about an ITT docu-
ment which declared the Chi-
lean armed forces had been
assured of U.S. support in any
Justification for doing so.
"This is moral principle
,with me," Kerry said.
"Do yott contend that this
temMittee has no jurisdie-
. lion?" bevirson asked.
"No, but I fall back on mymoral commitment. I cannot
wreck an institutional process
for any reason I can think of
here. ?It's a philosophical thing
. on my part," Korry said. "I
took an oath when I became
ambassador. I'm not about to
break my part of that bar-
gain."
Korry said that If he seta
precedent by telling the com-
mittee about his instructions violence or civil war, Kerry
from the State Department it ? :said 116 never made any such
might lead to a return of con-. promise even though lie was
ditions like the McCarthy era asked for such assurances.
With diplomats being afraid to
commit anything to paper.
? But Kerry did categorically
deny to the subcommittee that
lie ever got any "green light"
to go ahead with any action
short of a Dominican-style in-
tervention, as was reported in
a message from ITT publicist
JIM Hendrix to his superiors.
THE LIBRARY JOURNAL
15 March 1.973
PROUTY. tletchcr. The Secret urn',:
the ('1 .1 and Its Allies in Control of
the UnitedStares and Ow II 'rirb/ 516p.
Prentice-11AI. Apr, i?73. $113 I ("72.
13361. IN t AllA110,,..f.f1Vi
This book is at iii best when it details
CIA secret operatliens. with which the
mi tutu is fiimiliar. I he poorer, Anil most
extensive, portions 'ITC lliciSe in %%hit b he
laboriously. and ??ith alloosiiw reputi
lion. explains wily he feels the CIA has
greatly vxCeCtli:tt its Iciill inithinilv by
conductinr secret ' operati,Ins. lip.' alNo
i
Faults the hick if quality intelligence
analysis. Prouty laims that Friends of
this agency hme;been planted in other
federal agencies And the military to en-
sure that CIA pets its way. Ile maintains
that Presidents hilve heen led into major
Ithin Is on tin corm-led ptoof of o review iethoiltilet1 fn. libtoty Journol. MAI,. IS. 1973
Korry said he told his embas-
sy people to stay away from
the Chilean military in the
critical election period.
Korry testifed that he never
heard of any ITT offer of mon-
ey to support any U.S. plan to
block Allende or cause eco-
nomic chaos there.
blunders by this practice and cites espe-
cialb, the Kennedy move to counter-
insurpency warfare in Southeast Asia.
The military bias of the former Air Force
colonel shows as he attacks the civilian
agency. claiming that 131sherg's leaking
of the Ventage!, Papers was a CIA plot
to make tlic military look bad. A spotty.
but interesting book.- George H.
ribrary of (*impress
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WASHINGTON POST
29 Mnrhh 1973
CIA A ide Disputes
ITT on IdOffer
IV Laurence Stern
wnAhlnetnn roAl.e1,1( Wrner
A high-ranking Central In- supporting any candidate in
,
lelligence Agency official has the Chilean election."
tOld Senate investigators that
he was nffered?and declined
--"a substantial fund" by Tyr!
hoard chairman Harold S.
Geneen to block the election
of Chilean President Salvador
Allende in 1970.
In sworn testimony released
yesterday, William V. liroc,
former CIA chief of clandes-
tine operations in the Western
.11emisphere, alc.n ii,knowl-
edged that. he discus 'rd Melia
with ITT offieinis In acceler'''
ate. economic instahittlY in
Chile at a crucial pot flea! pe-
riod for Allende.
Broe's testimony, given to
an investigating subcommittee
Tnesday under an unprece-
dented arrangement, contra-
dicted earlier assertions under
oath by on ITT vice president
that Geneen had made the.
money offer to finance hous-
ing and technical agricultural
assistance in Chile.
Geneen is (Inc to testify on
Monday. Until then. Sen. McCone, then the director, 01
his financial offer to Rroe on
Frank Church (Didaho) said not accept the money.
,vesterday, . the investigators Broe's testimony indicated:
would not "pass judgment" on that the agency took a more
the possibility of perjury ac- cooperative attitude with ITT
ion in the ITT ' vestigal ion in subsequent meetings. fol.-
Church is 'chairman of the lowing Allende's narrow popu-
Senate Foreign Relations Sub- Tar plurality on Sept. 4, 1970,
committee on Multinational but before he was installed by
Corporations, which is con- a vote of the Chilean Congress
ducting the inquiry. The panel the following Month.
questioned Broe in closed ses- Again at the direction of :
Sion Tuesday morning and Helms. Broe said, he! met. with
submitted the transcript to Gerrity On Sept. 29 to explore
the CIA .for review. Church with the ITT executive "how
said it was unprecedented for the deteriorating economic sit-
an operating agent of the nation On Chile) could be ac-
agency ? to give sworn testi- eeferafed
y such
BI-OC confirmed that he dis-
tigating committee, cussed with Gerritmony to -a congressional inves-
Time testified that. he went measures as cm-tailing bank
to the meeting with Geneen at credits and deliveries of spare
the Sheraton Carlton Hotel on parts. creating pressure on
the night. of .Tuly 16, 1970, un- savings and loan institutions
der instrnctions from then to close their doors, and with-
CIA director Richard M. drawing technical assistance.
mic pressure, said
The CIA's endorsement of
placed by President Nixon and this econo
Helms, who was recently re-
appointed Ambassador to t 1- u
Broc. wasdesigned o c isco r-
-Iran. age Christian Democratic con-
At the meeting, Woe testi- Cenern offered the still- gre..ssmen from supporting Al-
fled,
iende a morxist-Socinlist, in
he, co ii Ir fill e d ;, , d omit- the crucial cmigressionnl hal-
stantial Imul --- which would - -
Wing On the presidency.
neled by the CIA ? to sup- "There was a thesis," said
port the "mliglacY of Jorge Time, "that. additional deterio-
Alessnndrt, of the right-wing
The CIA official asserted ?
that. Geneen at no time sug-
gested that the money would
be contributed for housing or
agricultural assistance. ITT'S,
vitt! ,president for corporate
relations, Edwaid Gerrity, tes-
tified last week that Geneen
intended the money to he uaed
for such purposes and not to
influence the course of the
election.
Under questioning by For-
eign Relations Committee
Chairman .T. W. Fulbright (D-
Ark.), Broe .said ITT, not the.
CIA, took the initiative in at:
tempting to intervene in the
Chilean election for its "owil.
corporate purposes."
It was not American policy,
13roe said, to influence the
Chilean elections hi 1970.
The CIA witness said Ge-
men told him that ITT and.
other American companies
raised a political fund to influ-
ence the outcome of the 1964
Chilean election, when Chris-
tian Democrat Eduardo Frei
came to power, hut that John
The menenver, described In'
Chile as the ".Alessandri For-
mula," was looked upon fa-
vorably by then U.S. Arnbas-
saclor Echicard Korry and ITT,
as well as by Allende's Chilean
(Monition. as a Merino of tn.
storing Frei to the presidency
by setting the stage for a new
election.
It never came to pass.
Church said yesterday he
thought it was "very im-
proper" for any American cor-
poration to offer a large sum
of money to support a CIA in-
tervention in an election. He
said it was also "improper pol-
icy" for the U.S. government
to enlist private corporations
In the same objective.
In a meeting with newsmen,
the Idaho Detnoerat said he
could not clarify the apparent
,contradtetion between Broe's
declaration to Geneewthat the
CIA was not supporting a can-
didate in the elction and
Broe's subsequent endorse-
ment of economic pressures
designed to prevent Allende
from taking office. Broe's tes-
timony, he said, "would have
to speak for itself."
periors, endorsed an economic
program to frustrate Allende's
candidacy in the Chilean Con-
gress.
Broe testified that he also
met with ITT's former Wash-
ington office, director William
Merriam on Sent. 22, a week.
prior to the Gerrity meeting,'
and gave his assent to ITT,
proposals for covert support,
to anti-Allende newspapers as
well as the hiring of radio and
television "propagandists'.
lfavoring other candidates.
"Mr. Merriam, without any
discussion of those (proposals).
said, 'What do you think of
the proposals', and I said
think they are all right," T3roe
testified. "Then there was nn
discussion."
The anti-Allende press -and
television campaign was pro-
posed by two ITT field opera-
tives, Hal Hendrix and Robert
Berrellez from Santiago. ITT
officials testified that. they
never put the plan into opera-
tion.
The purpose of Church's in-
quiry is to determine whether
ITT brought improper influ-
ence in Chile to affect: the out-
Sen. Clifferd P. Case (R- come of the 1970 election and
.
Ni.) also observed that "the .,1 the extent to which it had the
-.active cooperation of the CIA.
ITT and a number of other
, companies contended that
1
their fears of an Allende ad-
ministration were prompted
by campaign pledges of the
Socialist candidate to national-
ize basic industries. such as
ITT's telephone subsidiary as
MeCone testified last week .? well as' American owned cop
that Helms had told him in per and bank holddings.
.the early summer or 1970 that . Allende's government eon-
' a National Security Council tended that it was negotiating
interdepartmental group gov-,'f': in good faith to compensate
- -ming CIA covert operations'' ? ITT for the telephone corn-
had decided to take no action.: pony until. March 21, 1972,
to thwart .Allende's accession when columnist Jack Ander-
son published internal ITT
documents suggesting that the
corporation had actively en-
gaged in plans to block the
election of Allende.
? ;,.' On the day the Anderson
papers were published, the
??? Chilean Ambassador to, the
. United States. Orlando Lete-
' Tier. had just returned from
Santiago with a counter.offer
to ITT, according to Chilean
government sources. After
publication of the documents,
Chile broke off its contacts
with ITT.
At yesterday's hearing the
Assistant Treasury Secretary
for International Affairs, John
M. Hennessy, said the Nixon
administrat ion eantioned in.
ternationnl lending orenniza-
tions against extending new
lines of credit to an Allende
government because of its
shaky financial condition.
the acknowledged, however,
that the administration h a d
authorized a $10 Minion loan
to the Chilean mili 1 a ry last
year.
"That seems to me from an
economic point of view en-
tirely inconsistent," observed
record to me is not clear.
One possibility under con-
sideration is that the policy of
the U.S. government under-
went change between Broe's
first contact with Geneen and
his subsequent meeting with
Gerrity.
ration irt the economic situa-
National. Pnrty. against Al- tion ',mod influence a large
ferule. number of Christian Demo-
In declining the offer. Broe cratic Congressmen who were
said: he told (ielleen `,'we Could pinmiing to vote for Allende."
not absorb the funds and lie told the subcommitte'e
serve as a funding channel. I that. ITT executives were neg-
also told him that the United ative toward the plan became
States Government was not. they felt. it was unworkable,
to power.
In early September, how-
ever, MeCone, an ITT -board
member and CIA consultant,
approached national security
adviser Henry Kissinger and
Helms to convey Geneen's of-
fer of aid to finance a U.S.,
government plan to block Al-
lende.
On Sept. 16 Kissinger deliv-
ered a not-for-attribution press
backgrounder in Chicago in
which he said, "I don't think
we should delude ourseves
that an Allende takeover in
Chile wottid not. present. mas-
sive problems for the United
States and democratic forces
and pro-U.S. forces in Latin
America and indeed to the
whole Western Hemisphere
. So we are taking a close
look at the situation. It is not
one in which our capacity for
influence is very great at this
particular moment . ."
An intensive lobbying pro-
gram was conducted during
mid-September by ITT offi-
cials with top administration
officials for some form of in-
tervention in Chile. Geneen's
offer of financial aid for a
CIA operation was rejected. -Case.
But on Sept. 29 Brae, acting Replied Hennessy: "I would
with the full consent of his su- have to admit there is some
inconsistency."
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NEW YORK TIMES
30 March 1973
C.I.A.'s Action On Chile Unauthorized, ExAisie Says
By EILEEN SHANAHAN
sprtio In The New Yak Ilmeg
WASHINGTON, March 29?
Charles A. Meyer. former As-
sistant Secretary of State for
Inter-American affairs, said to-
day that, so far as he knew, the
Central Intelligence Agency
was never specifically author-
ized to explore the possibility
of using private American. cor-
porations to damage the econ-
omy of Chile to influence the
1970 election there. .
But Mr. Myer. now a Sears
Roebuck executive refused to
criticize the C.I.A. for discuss-
ing this line of action with In-
ternational Telephone and Tele-
graph Corporation officials,
saying that such "exploration"
. did not necessarily violate the
basic United States policy of
noninterference in the Chilean
election.
? Strong doubts about the
propriety of the C.I.A.'s action
were expressed by Senator .1. W.
Fulbrip,ht, chairman of the Sen-
ate Foreign Relations Commit-
tee, and Senator Frank Church.
Mr. Church, Democrat of Idaho,
heads the subcommittee on
multinational corporations that
is investigating the activities of
I.T.T. in Chile.
Senator Fulbright, Democrat
of Arkansas, said that it looked
to him as though the C.I.A.
was "responding to a request
by a former director of the
C.I.A." rather than to govern-
mental policy and was "going
off in another direction."
Earlier testimony had dis-
closed that John A. McCone,
former C.I.A. chief who became
a director of I.T.T., went to
Richard I trims, his soccessor
suggest that the Government
take steps to prevent the elec-
tion of Dr. Salvador Allende
Gossens as President of Chile,
Dr. Allende, a Marxist, had
campaigned on a platform of
nationalization of basic indus-
tries in Chile, including the
telephone company of which
I.T.T. was the principal owner.
Senator Church asked Mr.
Meyer whether the top-level
governmental agency that is
supposed to approve the intel-
ligence agency's operations in
advance?it is known as The
40 Committee?had ever "de-
cided as a matter of policy that
the C.I.A. should explore the
feasibility of stirring up eco-
nomic trouble" in Chile.
"To my certain recollection,
no,'' Mr. Meyer replied.
But he and subcommittee
members engaged in a long
and inconclusive wrangle over
whether the discussions be-
tween an I.T.T. officer and a
C.I.A. official constituted "pol-
icy" or "action" that required
such advance approval.
The discussions were held by
William V. Broc, former direc-
tor of clandestine. activities in
Latin America for the agency,
and Edward J. Gerrity, the com-
pany's senior vice president for
corporate relations and adver-
tising. They saw each other in
New York in late September,
1970, after Dr. Allende had won
a plurality hut not a majority
of the popular vote. The Chilean
Congress had yet to make the
final choice of a President; it
chose Dr. Allende on Oct. 24.
What Mr. Broe discussed
with Mr. Gerrity was the possi-
bility that American hanks
might cid off credit to Chilean
businesses slow deliveries as a
means of creating enough eco-
nomic prOblcins in Chile that
members of the Congress would
have second thoughts about
electing Dr. Allende. A cutoff
of technical help was also dis-
cussed.
Mt. Broe testified that he
had given Mr. Gerrity a list
of American companies doing
business in Chile that might be
helpful in creating economic
problems, but said he had giv-
en no instructions that I.T.T.
get in touch with them.
Mr. Gerrity and, later on
the company's board chair-
man, Harold S. Geneen, reject.
ed the whole idea because they
thought it would not work.
Mr Meyer conceded under
questioning that if the plan
had been adopted it would
have constituted a change in
the policy of noninterference
that would have required ap-
proval at a higher level than
that of directors of the C.I.A.
The director, Mr. Helms, had
instructed Mr. Broe to explore
the plan with Mr. Gerrit.y.
Senator Church said, how-
ever, that he was "afraid. that.
I.T.T. did ?successfully lobby
the C.I.A. on behalf of a covert
operation, without policy ap-
proval."
"That's how this committee's
record stands," he added..
Mr. Meyer also testified that.
at the intdlieenre neeoey, to lenders end other American
WILLIAM r BUCKLEY JR.
Chile Ikvii NO Rs.
II is by no means obvious
why everyone persists in re-
ferring to the election of Al-
lende as a purely "internal"
matter. It was never any such
thing, anti if only Harold Ge-
neen of ITT recognized the
character of the Allende vic-
tory. why then Harold Geneen
is a lot smarter than most of
the Srnalf)VS who are interro-
gating officials from ITT and
drinking deep draughts of
sanctimony over ITT's offer
to contribute $1 million to-
wards any government-spon-
sored plan to prevent the in-
stallation of Allende as presi-
dent of Chile.
We are talking about Sep-
tember of 1970. On Sept. 4 Al-
lende won a plurality, which
did not automatically entitle
him to be named president of
Chile. That decision was for
the parliament to make, at a
scheduled session on Oct. 24.
'The question is whether ITT
boa a re,litimate interest in
adding itt. pressure to that of
others to persuade the parlia-
Approved
ever spelled out to him the
purpose for which it offered
the Government up to SI-mil-
lion for use in Chile, Mr. Gerri-
ty had testified that the money
was for 'constructive" pur-
poses, such as subsidies for
low-cost housing, and said this
had been made known to Mr.
Meyer.
Other witnesses and some,
internal company memoran-
dums indicated that the money '
was for ?-.Liancing an anti-Al-
lende coalition in the Chilean
Cc ogress.
Senator Church. after bear-
ing Mr. Meyer's statement about
the $1-million offer, said that
it was "obvious that somebody
is lying and we must take a
very serious view of perjury
under oath." He said the trans-
cript of the hearings would he
turned over to the Justice De-
partment for review and pos-
sible filing of perjury charges.
In another highlight of the
day's proceedings, Felix Ro-
halyn, an I.T.T. hoard mem-
ber, disclosed that the board
had not been informed of the
$1-million offer. He said that
in a company of that size ?
it is the sixth largest Ameri-
can, corporation, with assets
in the billions ? decisions in-
volving St-million were often
made without the knowledge of
no one from the company had the hoard.
ment to name someone other
than Allende or, better still, to
call for a new election.
How can the Chilean out-
come be said to have been
.purely an internal matter?
The officers of ITT, having
carefully observed the cam-
paign of Salvador Allende and
the promises he made. con-
chided that he would certainly
proceed to nationalize the Chi-
lean telephone company. By
everyone's reckoning the val-
ue of ITT's holdings was $153
47, -rirwi
av
We return to the question:
In what sense is it an
"internal" Matter if A decides
to steal the property of B?
The fact that A is'a country
and B is merely a corporation
says only that B is going to
suffer considerable disadvan-
tages in attempting to cope
with A. It hardly says that B ?
ought not attempt to cope with
A. ITT did not, as it happens,
mount its own operation in
Chile, attempting to persuade
the parliament not to vote for
Allende. It merely offered to
contribute to any U.S. enter-
prise aimed at the same pur-
The ITT people were smart pose.
enough to anticipate that To suggest that foreign
when Allende got around to governments are not involved
nationalizing the telephone or should not be involved in
company he would offer for it wrestling for the favor of the
a small fraction of its ac- majority in swing countries
knowledged value. That he which are points of contact in
would, in effect, confiscate the cold war is simply to beg
the property. In due course, the question: How is it that
Allende offered $24 million for the Soviet Union and Castro's
the $153 million asset, proving Cuba were so interested in the
the ITT officials to have been election of Allende as to spend
altogether accurate in their millions of dollars and commit
forebodi rigs. entire communications andus-
4?
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wArdIT.TRIT^11 STAR
'n tin Ce'h 1973
tries to the end of electing
him?
Whet President Allende fl- I
nally did to ITT was. very+
simply, to take over the oper-
ation of the telephone compa-
ny without any compensation
whatsoever. Those who are'
anxious to make any point at'
the expense of American busi-'
ness who say that ITT got
what was coming to if, in the
light of its proffered interven-
tion make a rather elltraq
mistake. It was not until the
spring of 1972 that Jack An-
derson published the secret
memoranda revealing 1TT's
offer of $1 million to stop Al-
lende. But it was in Septem-
ber 1971 that Allende simply
took over the Chilean tele-
phone company, more or less
without comment: a clean
theft of $153 million. 1 do not
believe that anyone who is a
shareholder of ITT believes
that that act by Dr. Allende is
a purely internal affair. There
is no internal right of any
country to steal the goods of
other people..
WASHINGTON POST
AP1'11 1073
IT
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By Lewis D. Dinguid
vs000Atuni, em?t rerehoi aerator.
SANTIAGO, March 31?Ch1-
le5 President Salvador Al-
lende is now convinced that
the U.S.. government con-
Spired; along with ITT, to pre-
tent his election in 1970, ad-
visers close to. the president
say. ?
As a result of testimony at
tecent hearings in Washington
Allende reached this conclu-
Von and broke off important
talks between Chile and the
United States, sources here
$ald. No date was set for the
tesumption of the talks, which
concerned the major outstand-
ing problems between the two
countries. The ,hearings on
ITT's activities in Chile were
held by a special Senate sub-
ilommittee investigating ? the
tictivities of multinational cor-
horat ions.
, Until now, the sources here
qny, Allende had interpreted
the Internal intuit Telephone
ftnci Telegraph documents that.
Columnist Jack Anderson re- ,
fettled last year as implicating
imiy the company, even
though they referred to meet-
ings between ITT executives
tind the Central Intelligence .
Agency's top agent agent in
Latin America. ?
? The documents and last
week's hearings indicated that.
ITT worked actively to pre-
Vent the .Chilean Congress
from confirming the election
Of A lb:nde, a Marxist, who had
tailed to win the popular-vote
absolute majority needed for
outright election. During his
Campaign Allende had pledged
to nationlize major foreign
holdings in Chile.
?tLN. Speech
In a speech to the U.N. Gen-
eral Assembly in December
Allende bitterly deno.tmced
ITT as plotting against Chile,
but he avoided implicating the
U.S. government in any such
Activity.
One item from the hearings
that is said to have helped to
convince Allende of U.S. in-
volvetnent was a report., not
ton firmed in the hearings,
that the N al Mita; Security
Council had allocated $400,000
fer covert propaganda action
against Allende during the
1970 presidential campaign..
The report, in a Washington-
datelined dispatch from the
correspondent of the Commu-
hist Party newspaper El Siglo,
was apparently based on a
tptestion risked by subcommit-
tee counsel Jerome Levinson
miring the testimony of Ed-
ward Korry, who Was U.S. am-
III/swifts to Chile in 1979.
(=rings
[Levinson asked Kerry if
the NSC had approved the
$400,060 fund, but Korry said
he could not answer any ques-
tions concerning "the aativi-
ties of the CIA."]
Bilateral Talks
The U.S.-Chile talks in
Washi ngl on that were broken
off were mainly concerned
with debt renegotiation and
Chile's refusal to compensate
American copper companies
and ITT for nationalized prop-
erties.
The talks, which began in a
good atmosphere in Decem-
ber, resumed March 22 just as
CIA. and ITT officials were
testifying. The next day they
were suspended anew. Mem-
bers of the Chilean negotiat-
ing team said that the hear-
ings were the main cause.
? Chile's ambassad,or to the
United States, Orlando ?Lete,
her, who heads the negotiat-
ing team, returned to Santiago
this week to inform Allende
on the talks and the hearings.
' Letelier is to go back to
Washington next week with
Foreign Minister Ciodomiro
Almeyda, who is scheduled to
address a meeting of the Or-
ganization of American States.
Almeyda is expected to spell
out Chilean efforts to reach
an agreement with the United
States on the copper issue,
and to accUSe the Americans
of failing to respond.
Such a speech would break
the tmderstanding that led to
the talks, since it was agreed
that their content should not
be revealed unilaterally. In ef-
fect. the ? Chilean negotiators
divnieed their position in con-
versat 'OTIS yesterday.
They said that Chile has' of-
fered to submit the question
of compensation for the cop-
per companies an interna-
tional panel, under proVisions
of a 1914 treaty with the
United States.
The huge copper mines of
Kennecott and Anaconda were
nationalized in 1971 under
constitutional amendment ap-
proved unanimously by the
Chilean Congress. Nationalism
had renehed such a level here
that even the right-wing party
supported the move.
Under the amendment, Al-
lende was authorized to calcu-
late the amount of "excess
profits" the companies had.
taken out. of the country and;
deduct this from their com-
pensation. Ilk calculations of
excess profits far exceeded
the book value of the mines,
and the companies therefore
received no payment.
Chile's position in its negoti-
erai U.S.-Chile
Tr 1 lc s
at ions with the United States
was that another constitu-
tional amendment would he
required for the copper com-
panies to receive payment.
. If Allende were to ask for
such a payment, the domestic
political results would he dev-
astating. But the Chileans ar-
gued that if an international
panel were to rule in faver of
the companies, some payment
would be politically feasible,
[The magazine Chile Today,
whose principal columnist was
a member of the Chilean dele-
gation to the talks, published
an article today saying that the
talks "ended in a total impasse,"
UPI reported. The article said
that the United States "adopted
from the very beginning a hos-
tile, obstinate attitude which
became threatening at the
end."
[State Department sources in
Washington said that the
United States had not rejected
the idea of using the 1914
treaty or any other mechanism
that might lead to "a mutually
acceptable solutioh" of the
problems between the two coun-
tries.
Bid they added that the
United States was not interest-
ed in any "cosmetic, time-con-
suming and nonproductive de-
vices," and expressed hope that
a solution could he found ?
"sooner rather, than later."
[The sources said the United :
States did not consider the bi-
lateral talks at an end and. was
willing to resume them at any
[The sources said the Senate
hearings did not establish any.
wrongdoing on the part of the
U.S. government, and should
not stand in the way of find-
ing a solution "that would
fully respect the legitimate
Interest of all parties:1
?ITT Takeover
In the meantime, the Chi-
lean government is preparing
calculations for the nationali-
zation of ITts majority share
in the $1.50 million telephone
company here.
A constitutional amendment
to allow site}, nationalization
is now going through the
lengthy legislative process. To'
date it has also been receiving
unanimous support.
The U.S. position. appar?
ently, is that Allende should I
begin now to seek authoriza-
tion, Lou- payment of the cop.'
per companies, since the proc-
ess is slow. The impasse over
copper is already more than
two years old.
During most of this period,
Chile has achieved a de facto
suspension of some $900 mil-
lion in debts to the United
States. But new credits Chlie
needs in its deepening eco-
nomic crisis have long Once
been suspended. i .
Another U.S. object:104 to
use of the 1.914 treaty If:Oat
either side can refuse to ae,
cept the final arbitration on
the ground of overwhelining
national interest. Chile's' posi-
tion is that the treaty pr ' posal
1.11
Is at least an initiative Ade
In good faith, and that It s up
to the United States NI accent
or offer an alternative.
Good, Faith .
With. the trr hearings now
raising the question of good
faith on the part of the U.S.
government, the Chilean team
Indicated that it will make no
move to renew the talks..
' Allende has established 'a
special task force to study the
Washington testimony for pos-
sible folloWup in Chile. lie is
reported to believe that Amer-
ican efforts to prevent. his tak-
ing power were carried out
with the connivance of opposi-
tkm politicians here.
Under consideration is a
plan to use the ITT issue to
consolidate support for the
president in the opposition-
dominated Congress.
One of the Ironies of the
ITT case is that. the company
continues to do considerable .
business here.
Phone Company
The.operatton of Its mOjor.
holding. the phone company,
was taken over by the govern-
ment in 1971. Company and.
Chilean government sonree4
alike indicated that they were
near agreement on compensa-
Min when the Anderson tioru-.
ments were printed, and the'
Chileans broke off negotia-
tions.
When the documents came
nut, Allende said privately,
"This is the first CIA plot that
benefited the victim." Indeed,
the seeming confirmation of
relentless Marxist charges
against the imperialists was a
political windfall for the presi-
dent.
Allende (1111PITI1 the doeu-
melds prinINI in hoot( form,
and the hook became a best-
seller overnight. Then Allende
announced at a !muse rally that
the governmeot would
"expropriate the urr."
Later he clarified his slate-
sayInc that. only the
phone company was involved,
Other IT'I' properties here are
two hotels, Avis car rentals,
small international telf
ice, and a. pbmw eritlipment,
OW.
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Sunday, April 1,1973 THE WASHINGTON POST
fl
Sembl
By Laurence Stern
Waphinstfrn rt Staff ??'rlier
, The most lurid of Marxist
propaganda parables against
the excesses of U.S. imperi-
alism cnuldn't have been
, plotted with more heavy-
handed caricature then the
'ITT saga in Chile, as it has
unfolded the past two weeks
:in a Senate hearing room.
There was the ? giant
American corporation con-
niving with the Central In-
Jelligence Agency to subvert .
by clandestine economic war-
:fare an elected left-wing
:government in Latin Amer-
ica.
There, also. twit a senior
'figure of the American in-
,dustriel elite. John A. Me-
Cone, serving as go-between
:for the CIA be once headed
and International Telephone
:and Telegraph on whose
board be sits.
There was. furthermore,
the spectacle of ITT execu-
tives lobbying officials of
the National Security Coun-
cil, the top-secret policy arm
of the White 'louse through
which the President directs
American foreign opera-
tions.
The ease has propelled
into the limelight AS CIA's
operational contact man
with ITT a government offi-
cial with the most tantaliz-
ing job title in town, Wil-
liam V. Broe, chief of clan-
destine services, Western
Hemisphere, of the CIA's
. Directorate of Plans.
The centerpiece of this In-
triguing jigsaw has been
ITT itself, whose motto?
"serving people and nations.
everywhere"--well describes
its multinatismal and con-
glomerate scale of opera-
tions. ITT, the nation's
eighth largest industrial cor-
poration, functions as a
global subgeyerninent in
more than 70 countries. It
reported $0.5 billion in sales
and revenues diming 1072.
Starting with the modest
hose of, the Virgin Islands
telephone company at the
beginning of the 1920s, ITT
rapidly branched out around
the world ..onder the dy-
namic menagement of a
Danish enterpreneur. Sosth-
cues Beim, who became a
naturalized American citi-
zen when the United States
bought the Virgin islands
from Demnark in 1917.
Corporate Involvement
fly World War Ii, accord-
ing to justice, Department
records, a German subsidi-
ary of ITT Wig an owner of
the compeny that produced
on Chile: A
influence Over
the Luftwaffe'a Rieke-Wulff
fighter while an American
subsidiary was building the'
"Huff-Duff". U-boat detector
for the 1.1, S. Navy. After the
war ITT collected several
million dollars in damaged'
from the U.S. Foreign
Claims Settlement Commis-
sion for allied bombing dam-
age to the Focke-Wulff
plants, according to govern-
ment records.
And so VT'T'e problems In
Chile came against a back-,
ground of. broad emporia&
involvement In Internet:Ionia
relations.
Two weeks of public hear-
ings by the Senate Foreign
Relations Subcommittee on.
Multinational Corporations
have provided a rare
glimpse of the interrelation-
ship between corporate in-
terests and public policy in:
the conduct of U.S. foreign
relations.
Bet it is by no means a
picture of clear-cot collu-
sion. in fact, there was some,
evidence of disarray within
the administration toward'
the assumption of power in
September, 1970, of tbe first
elected Marxist government,
in the Western hemisphere,,
as the administration of
Chilean :President, Satyr:dart
.Allende was called.
? .The professed position of
the Nixon administration te-
ward Allende's election was
:OW! noulrolity, 'T'his'
was reiterated dm int! the,
_Senate bearings by fonner'
Assistant Secretary ef State
for Inter-American A ffait'S
e'lilrles Meyer and former
Ambassador to Chile Ed-
ward Korry.
Yet CIA operative ITiroe'
testified under oath that his
"operational" contacts with
ITT, which included agency-
drafted and approved plane
for ?saboteee of the Chilean
economy, were carried out
with the complete approval
of his superiors,
'Explore Options
His superior at the time
was CIA Director Richard
M. Helms, who reports to
the National Security Conn-
ell which in turn reports di-
rectly to I he President
through national security.
adviser Henry A. Eissinger.
; It is inconceivable 10
those familiar with the
lightly, managed White
.House national security sys-
tem that such a mission as,
iirhe emultictrti With ITT of-
ficials In tate ,September,
1970?before the Chilean
congress met to ratify Al-
lende's popular election?
was without full NSC ap?
prove].
How dtcl'this square with,
the policy of neutrality to
which both Korry and
Meyer attested? Meyer sitg;
gested that there was no ;to
consistency. The govern-
ment maintained the right,
he said, to explore options.
Slibcommittee membere
reacted with skeptical grttm-
bles. Had ITT decided to
carry out Broe's suggeStionso?
Chairman Frank Church (D
Idaho) pointed out, the
"option" would have become.
*an Operational policy. ITT,
as it turned out, felt the
plan was unworkable. As
formulated by Broe and the
agency, it would have been
up to ITT to execute on its
own.
The gist of the plan was
for a group of American
companies, under ITT prod-
ding, to use their financial
clout to accelerate?as Broe
testified?"the deteriorating
economic situation" in
Chile. The objective was to
turn wavering Christian
Democratic congressmen
away from Allende irt final
balloting.
In his conversations with
ITT Vice President Edward
Gerrity, Woe told the sub-
committee, "it was under-
, stood that be was going to
" 1w doing it and CIA was not I
involved. It was ITT which
was loolring into the thing."
That. testimony was cru-
cial, for it may have illumi-
nated the National Security
Council. derision in early
September, 1070, for dealing
with Allende's imminent
election in the Chilean con-
? gress the following month
. as the hemisphere's first
constitutionally chosen:
Marxist chief of stole.
The indications ih the in-
vestigation, never publicly
confirmed by a government
Witness, were that the CIA
was authorized to explore
various covert options de-
signed to prevent. Allende
from taking power. These
actions fell in the shadowy
region bet open jefhlte pot-
!icy and clandestine opera-.
tions that might he carried
Out. without the public sanc-
tion of the administration.
ITT was the chosen In-
strument because of the pre,
vious approaches of McCoile
and ITT Chairmen Harold
S. Gowen, prior to Al-
lende's popular election.
trr, ns Broe tpsfified,
"wag the only company that
Polk
contacted the agency end
expressed an interest. In the
current situation in Chile."
? The administration may
well have reacted with some
trauma to Allende's popular
election victory since, ac-
cording to the testimony,
CIA pone have inaccurately
predicted the election of his .,
opponent, Jorge Alessandri,
condidate of the conserve-,
tive National Party.
The CIA's rejection of
Geneen's overtures the pre-
viously July for intervention
'In Chile could have resulted
from the agency's misread-
,ing of Allende's election
prospects. By its own testi-
twiny, Geneen's proffer of
"a substantial fund" to fi-
nance an anti-Allende plan
was unattractive to the CIA. '
What the testimonial pat-
' tern suggests Is that. as po-
litical events crystallized in
C h 11 ei the CIA and ITT
were pursuing increasingly
-.congruent goals: further roil-
. ing Chile's already sits-
' Hinted economy, trying to
promote the prospects of Al-
essandri in the cengres-
,? sional election run off, WU-
-
mately seeking to block Al-
lende's accession as preS1-
'. dent.
ITT was pursuing its own,
corporate welfare in view of
'Allende's pre-election vows
to nationalize basic Indus-
' tries, ns well as the irr-
owned Chilean telephone
company. The CIA was pur-
suing a softly stated man-
date of the hISC to see what
It could do to stave off the
specter of a new Marxist ad-
ministration in the politi-
cally volatile southern hemi- fr's
inhere.
Jost how high the man-,
date ran within!! the
istraiion can only be a suh
tect of speculation. Tlw Sen-
ate subrommittee sloes mit I
even entertain the possibil-,
ity that. it can compel the,,
testimony of Kissinger. the
man who hos all the an-
swers,
But Kissinger, 12 (toys a0
ter Allende's popular flee/
tion, is on record as having
expressed serious concern'
over the impact of a chttenn!
Marxist government on stir.,
rounding reunifies.
In the ease of ITT, the re.
cord suggests that (lpnecrt.'
Wenn(' and othef corm): at
executives had an access to'
top ntlminictrat ion offiriatN.
that hoc prettied al leost
strong ,robloopp HI lotto
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Once over poliey.
At the ii"w it wns pushing
for intervootion in Chile,
ITT WAR eampaigning ac-
tively in washinelon agaInst
r d n g ant It melon:
caning for it to divest itself'
of the $2 billion Hartford
surante
ITT officials were, In
some eases, dealing with the,
same Administration men on.
the two separate matters. As!.
It. turned out ITT won
field. on the Hartford ease'
when antitrust. chief
mat McLoren, now a federal -
judge, reversed himself and
withdrew opposition to the
merger.
Things may not end op .s.o'1,1
happily for ITT 1in the Chi=.:.
lean affair. Its claim upon
the Overseas Private Invest-
ment Corp.. (OPIC), a gov-;
ernmcnt agency, for $92.5.
million in confiscation ?
losses is now hi doubt,
Genee.tes position in ? the,1
company has not, been to-
tally enhoneed by the rave:J.
lotions no Capitol 11111 of
the past few weeks.
1TT's chairman iS due to;i
testify on his dealings withl
the ndmieistration and CIA;
over the Chilean affair. His)
position, as a result of the!,
.testimony of McCone, Broe.
and ITT executives, is some-.I
what analogous to that of ae
man standing in, a cortier:
stirrounded by wet paint. ?-
WASHINGTON STAR
2 April 1973
LITT 31
Can't Uecalli
Chill
WASHINGTnN STAR
27 March 1973
issei ?ea 0
esill.rnon
A and, ?,1r441
By JEREMIAH O'LEARY
Star-News Staff Writer
An agent of the CIA today
made an unprecedented ap-
pearance before a Senate sub-
committee to tell under oath
what he knows about the rela-
tionship between himself and
International Telephone and
Telegraph Corp. regarding po-
litical events in Chile.
The appearance of William
V. Broe, former chief of the
CIA Latin American division,
before the Senate Subcommit-
tee on Multinational Corpora-
tions, was behind closed doors.
But Chairman Frank Church,
D-Idaho, has worked out an
agreement with CIA Director
James Schlesinger so that a
transcript of much of the ques-
tion-and-answer session will
be released, to the public prob.
ebly within 24 hours.
No operating agent of the
CIA has ever made a congres-
sional appearance under such
near-open conditions. The sub-
committee, which already has
interviewed Broe informally
WS to make public a declassi-
fied copy of that transcript to-
day, according to aides.
Who Initiated Plans?
Subcommittee officials said
It was obvious that the CIA
agreed to this break with prec-
edent because the agency is
anxious for its sidle of the ITT-
Chile controversy to be mado
public. Testimony in the hear-
ing between ITT and CIA in
connection with the election
of Marxist President Salva-
dor . Allende in Chile.
The major question raised
by conflicting testhnony is
whether CIA or ITT initiated
plans whereby the corporation
r
rilagu
By JEREMIAH ol,EAny
Star-News St af(Wrifer
ITT Chairman Harold S. Geneen today told Senate
Investigators he had no recollection of offering a financial
contribution to CIA agent William V. Broe for support ala
democratic candidate before the 1970 Chilean election bu
"accepted" that he might have done so.
However, Geneen acknowledged directing that the
State Department and Dr. Henry A. Kissinger be informed
that ITT was willing to assist financially in any U.S. gov-
ernment plan to protect. American investment. in Chile aft-
er Marxist Salvador Allende's election seemed certain
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vein
offered up to $1 million to any
U.S. government operation re-
garding the Chilean election
outcome.
Schlesinger Letter
John McCone, former CIA
director and now a director of
ITT, testified he understood
the money was to block Al-
lende from taking power but
HT senior vice president Ed-
ward Gerrity said he thought
the money was for housing
and nericultneal projects that
might mollify Attend() in Ida
drive to nationalize ITT prop-
erties without compensation.
$chiesinger's agree me nt
witi the subcommittee about
Dive's appearance today was
described in a letter .to Church
.yesterday. It said:
? "I believe that our discus-
sions in recent weeks have in-
dicated my desire to cooperate
to the fullest extent possible.
with the subcommittee in the
matter of the ITT-Chile inves-
tigations consistent with res-
ponsibilities placed on me by
law and with the necessity for
respecting certain sensitive
agency relationships.
"It was in this spirit that I
suggested that Mr. Broe meet
with you and the staff of your
subcommittee in formally and
privately to discuss the extent
of Mr. Broe's relationships
with officials of ITT. As an
outgrowth of that meeting,
Mr. Broe responded for the
classified record to a series of
questions submitted to your
subcommittee staff. I have
since reviewed Mr. Broe's an-
swer ' to these questions and
concluded that most, if not all
of them, cart be declassified
for incorporation in the public
record if you so desire.
Unique Aspects
"As you know, operating of-
ficials of the agency have not
previously testified under oath
in public sessions. I desire,
however, to continue to coop-
erate as felly possible with
your subcommittee because of
the unique aspects of the hear-
ings on ITT. I would agree,
therefore, to have Mr. Broe
appear before your subcom-
mittee under oath to-present
testimonw (limited to his con-
versation with ITT officials in
1970 in connection with Chile.
"Due to compelling opera-
tional and security reasons
which we have already dis-
cussed, I must request that Mr.
Broe's appearance be limited
to executive session. Furilier,
as the subcommittee feels it is
desirable to make Mr. Broe's
testimony public I would be
gl;:d to review his testimony
for that purpose.
"I am certain such an ar-
rangement would result in
placing on the public record
the items which your subcom-
mittee believes are important
in connection with its present
investigation. This procedure
would, I trust meet your objec-
tives while allowing me the
flexibility needed to discharge
my responsibilities as called
for by the National Security
Act of 1947."
The subcommittee was to re-
turn to public session later to-
day and question former Am-
bassador to Chile Edward Kor-
ry and two officials of the Ana-
conda Copper Co.
lat3r that year.
Gencen's testimony today before the Senate Subcom-
mittee on Multi-national Corporations drew a sharp dis-
tinction between his July 1970 meeting with Broe in Wash-
ington and 1TT's decision to "risk reasonable additional
funds" in September when Allende appeared assured of
the presidency.
The kind of U.S. government plan ITT was willing to
support financially, Geneen testified, "would offer Allende
a quid pro quo for priceeding with nationalization in a
manner that would privide for a long-term recovery of U.S..
investments. Of course, our thinking was very preliminary ,
and we had no specific plans but we did think that some
socially constructive joint private industry and govern-
ment projects could be part. of the overall plan.
"SUCH A PLAN might well envision the willingness on
Our part and others risking additional reasonable funds in ;
order to safeguard the very large amount which were at
risk."
"The amount of up to seven figures." Gcnnen said,
"was intended to show a serious intent and to gain scrims
: eitAntOMMIRIN
11'0' 0130001-2
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LUNPON -HITS
22 March 1973
Affi honv Thomas reports on
hc ITT affair in Chile-
fffow tight a grip do
TFiCelati ;la's have
?i US foreigu policy?
A Congressional investigation negotiations within Gatt this
into the impact multinational "Wm"'
Corporations have on foreign Many Administration officials
policy has begun this week now believe President. Nixon
with sensational documentation will have to agree to a signifi-:
on the clandestine operations cant increase in United States
of the International Telephone .taxes on the foreign profits of.
and Telegraph Corporation in. United States multinationals if
. the trade Bill is to pass into law..
ITT internal documents pro- s Against this backdrop, the ITT
(Need at the hearing indicate, hearings could not have come at
at the very least, close links
between this huge conglomer-
ate company and the Central
Intelligence Agency during 1970
in an effort to secure their com-
mon objective of frustrating the
results of a popular election
which brought Dr Salvador
Allende, a Marxist, to power as
president.
The hearings have predict-
ably provoked immense interest
and while it is undoubtedly true
politicians enjoy the limelight:
the hearings are viewed with
decidedly mixed feelings by the
more serious members of the
Senate Foreign Relations Com-
mit I 02.5 Stlh-COrliinit tee on
molt butt banal corporal ions.
They see t he investigation.
which is expected to stretch
over three or four years, as an
important one and they are
wm vied the ITT hearings could
distort their purpose by giving
the study orosecutor-verms-de-
fetulams overtones.
'There is also some concern
about the impact the hearings
themselves could have on for-
eien policy. with the ITT revela-
tions causing a wave of anti-
A inericattism in Chile which
could ripple throughout Latin
merica.
In the United States itself the
investigation is yet another sig-
nificant pointer to an increasing
itatirmat suspicion that the in-
of United States multi-
tuitional corporations do not
always?or even visually?coin-
cide with the wider national
interests of the United States.
It follows closely on the heels
I a separate study by a Senate
I Mance Committer ..ult-cometiii-
tee which included a table
ineasoring the gross animal
site s of American multinationals
against the national products of
Do Piro oat ions.
On the basis of 1970 , tatistics,
ceorrat Motors was bigger than
Smith Africa. Exxon Cm nova-
tion than Denmark. Ford than
Austria, Shell than Ow Phillip,
pines, and ITT than New Zea,
laud, Portimal or Peru.
These and other such reports,
lot:ether with trade union resent.
merit which is encapsulated by
elogan " export of jobs
have bind a comulative impact
on the United States Congress.
This is expected to in fillenCe the
eaetion of legislators to the
It ado legislation proposals pre-
slolem Niynn plaits to sobrnit in
r,epat mint) for nmitilateral
El worse time for the United
States multinationals. not least
because they give substance to
socialist and Marxist arguments
about a very. intimate relation-
ship between government and
big business in the modern
capitalist state.
.ITT's internal documents re-
veal a succession of meetings be-
tween its senior officials and Mr
William Broe, whose formal title
is Chit( of Clandestine Services,
Western Hemisphere. Dime-
torate of Plans, Central Intelhi
gence Agency.
In one memorandum, Mr
William Merriam. the ITT vice-,
president. reports of October 9,
1970, op a lunch he had " with
our contact at the McLean,
agency ". McLean is a surburb
of Washington DC which con-
tains the CIA headquarters and
Mr Merriam has since confirmed
the " contact" was Mr Broe.
According to Mr Merriam, Mr
Broc was " very, very pessir
mistic " abon tthe chances of the
Chilean Congress refusing to en-
dorse the victory of Dr Allende
in the Chile presidential election.
lie further reports that no
progress bias been made in per-
suading American companiesi
including General Motors and
Ford, to cooperate in some way,
as to bring economic chaos in
Chile and adds: "Undercover
efforts are being made to bring
about the bankruptcy of one or
two of the ma ior savings and,
loan associations. This is expec-
ted to trigger a run on the banks
and the closure of some fac-
tories, resulting in more Intern-
ployment."
The intention of all these
efforts was, aoraretitly. In panic
the Chilean Congress into award-
nig the election to Mr Jorge
Allesandri, a right-wing candi-
date who trailed Dr Allende in
the oopolar vole.
Mr A IlesamIri was prepared to
resign immediately god so open
the way for Presideot Frei, the
retiring President, to run in a
two-way contest against Dr
Anemic,
The documents also reveal in-
telligence reports to the com-
pany in which the characters of
prominent men are analysed
with chilling candour. A report
from FET's Chilean office des-
cribes Mr Edward Korry, the
Oleo American Ambassador to
Santiago, aS a man who has a
habit of" saying one thing to one
person and a different story to
his next visitor ".
Mr Charles Meyer, the theft
NEW YORK TIMES
28 March 1973
Ex-Envoy Says' the COLA.
dPrdered Polls on Allende
By EILEEN SHANAIIIAN
Seedni la The Nev./ Yolk /1111t9
WASHINGTON, March 27close United States Intelligence
'Sources or methods.
The Central Intelligence -,
According to the Korry testi-
Agency commigsioned polls to ninny. the polls that the C.I.A.
determine the probable out- commissioned showed that Dr.
come of the presidential : Allende would win the election,
tion in Chile in 1970, Edward
M. Korry, former United States.
Ambassador to Chile, said to-
day.
But Mr. Korry would not
say, under questioning from a
special Senate subcom.ittee,
whether he also had known a
reported decision by the agency
to set aside $400,000 for prop-
aganda activities in Chile
e aimed at influencing the out-
come of that election.
The winner was Dr. Salvador
'Allende Gossens, whom Mr.
'Korry said he had wanted de-
feated because Ile relieved that
,Dr. Allende would carry out
Ithe Marxist platform on which
!.he ran and would nationalize
*American-owned businesses in
-Chile.
Question Raised by Lawyer
The question about a $400,-
1.000 propanga fund was raised Mr. Levinson indicated that
whieh was a three-way race,
with about 10 per cent of the
vote.
Mr. Korry said that he had
,tallenged the validity of the
polls because they were based
ion 1960 census statistics and
' he had felt that more up-to-date
information would show less
support for Dr. Allende.
The Chilean won 36 per cent
of the popular vote and was
later elected by the Chilean
:.Congress under a regular pro-
cedure for deciding an election
in which no candidate received
a majority of the votes.
The decision to allocate
$400,000 for anti-Allende. prop-
aganda was made, according to
Mr. Levinson, not just by the
Central Intelligency Agency hut
also by the high-level inter-
agency Government committee
that oversees the agency's p0t-
ie9.
:by Jerome T. Levenson, chief the money had been earmarked
for use in Chile in late June or
early July 1970; the popular
election was held Sept. 4, 1970.
Mr. Korry took the position
that he could not answer ques-
tions on the reported fund and
on other matters he was asked
about today.
On matters involving the
C.I.A., he said that the law pro-
vided that only the agency's
director could disclose anything
concerning its activities.
On questions about instruc-
tions he had received front the
State Department, he said that
if he answered be would he-vio-
lating promises of confidential-
ity he had made when sworn as
Ambassador.
,counsel to the subcommittee on
-multinational corporations of
the Senate Foreign Relations
Commit tee.
Mr. Levinson did not name
his source for the assertion that
$400,000 had been made avail-
able to influence the election.
Earlier in the day, however,
the subcommittee had ques-
tioned, in a closed session, the
former director of the Central
Intelligence Agency's clandes-
tine activities in Latin America,
William V. Broe.
? Mr. Broe's testimony is to be
made public as soon as top
agency officials have reviewed
it for previously unpublished
:infortnation that might dis-
assistant secretary of states for
inter-A merican affairs is
described as charming, e(egant,
Witty and yanking " very high
as the weakest assistant secre-
tary iul recent times ".
'Ube reports eller, extend to au
clot ailed atialysis of the health
of Dr Allende. ITT headqoarters
are informed: " Ile has kidney
trouble. lie has had hepatitis
twice, arid it left hill] with
chronic liver problems. He has
soffered a heart attack, and two
minor strokes that left the right
side of his face partly paralysed.
Ile is also known as a heavy
drinker, and of course this
aggravates his physical pro-
blems ".
But what is most likely to com-
promise 11"1"s standing in less
developed countries are the
documents which profess to dis-
close intimate advance know-
ledge of plans for a military
coup in Chile by lite then
Gemo Rohm-to Vianx.
Mm E. J. Gerrity, no I IT
senior vit e president, was
informed in a metno ft nin
the ITT Chilean office on.
October 16, 1970: " It is a fact
that word was passed to Vial's
from Washitoonl) to hold back
last week. It was felt he was not
adequately oleo:tied. his timing
sac off, arid he shoed(' 'c not it
for a later, unspecified date.
Emissaries pointed out to hint
that if he moved orematittely
anti lust, the defeat would be
tam:mu-mot to a Boy of Pigs '
in Chile ".
Eight flays alter this internal
MC1110 Cellerni rtelle Sehtleidet,
the commander in chief of the
Chilean Army, was assassinated
and Getter:11 Viattx was later con?
viered of ulottitic his death.
Three revelation,: and e
which will become ottl?lir clot inc
the f.:mogressiotial ltrorinr, --are
going to reverberate aromul
Latin America, Africa and Asia
For many years to comi0.
Oilier multinational corpot a.
//rr going to ,offot in ilio
had ota,11 ?Icy trto coo
viticingly tlettionct tat,' t11:11
behaviour ic erm and
not the qiortri,
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WASHINGTON POST
1973
.11 Cad
April
ITT
A if inns
Fir lid Otier
By Laurence Stern
rom, Si aft Wrtfrr
Harold S. Colleen. chairman
of the International Telephone
and Telegraph Corp.. acknowl-
edged Yesterday that he twice
offered large sums of money
to the U.S. government in 1970 ?
to block the election of Chi-
lean president Salvador Al-
lende.
The ITT executive, reputed
to be the nation's highest paid
corporate officer, gingerly
stepped ;ironed contradictions
in previous testimony by ITT
officials and other witnesses .
which Sen. Frank Church (D-
Idaho) declared Might he the
basis for perjury action.
i -Concert said he coeld not
,recall making an offer of a
hsithstantinl hind" to a top
irentral Intelligence Agency
official. wminm V. Broc, in
..ltily, 1970. to finance an
'agency effort to stop Allende.
i But he stipulated that, he
woeld accept Woe's sworn
Iversion of their conversation
timing a late evening meeting
in Geneen's room at, the Sher-
tit on Corti on Hotel here.
tie said the offer to Proe
might, .hove horn ill-advised,
prompted by his "shock" at
political developments in
Chile where he feared confis-
cation by the Allende govern-
?trient of ITT holdines. The
CIA declined his oller, he
s;,id, and the matter "died
rirdit there."
Nit the offer surfaced again
in different form in SePtcm,
her after Allende's mender
election, GellN' 11 C011er.stled 1,111.
OCT' onrcdioning, It came in
it he form of a propoSai con-
veyed by ITT to national se-
curity adviser Henry A.
singer and Richard M. Helms,
then head of the CIA, to do-
nate "up to a million dollars"
toward a plan to block , Al-
lende's confirmation by the
? Chilean 'Congress.
Geneen's emissary this time
was John A. McCone. Helms'
former boss in the CIA, an
ITT board member and also
a CIA consultant. McCone
first disclosed the mission in
earlier testimony to the sen-
ate investigators.
Geneen also disclosed that,
ITT had offered to contribute
to the CIA In the 1,904 elec-
tion when Allende lost to
Christian Democrat. Eduardo
Frei. The offer, he said, was
turned down, as was the 1970
proffer to the agency.
For three hours under hot
, tcleviston lights Geneen spar-
red his Senate questionerS.
Al one point Church, chair-
man of the inquiry, exclaimed
that. testimony on ITT's role
was getting "curiouser and
curl miser."
Geneen was flanked by two
lawyers and a bodyguard. Be-
hind him sat a row of ITT's
top corporate -officers, His
testimony marked the closing
session of the inquiry by the
Senate Foreign Relations Sub-
committee on Multinational
Corporations into the giant
communication conglomerate's
aelivities in the 1970 Chilean
election. ,
In earlier sessions ITT vice
Ipresident Edward Gerrity said
Geneen'S second offer of a
. fund "up to seven figures"
was for some form of devel-
opment aid In housing or agri-
culture. He was never aware,
said Gerrity, of the purpose
disclosed by McCone: to fi-
nance U.S. government efforts
to block Allende's confirmii-,
Bon by Chile's Congress.
But the ITT officiel who
was Opposed to convey the
offer of development aid to
the. White House and State,
Department said yesterday he
had never been instructed to.
make such an offer. "I passed
on the message I received,"
said Jack Neal of ITT's Wash-
ington office.
Gerrity conceded he might
have failed to pass along that
ITT was ready to underwrite'
A $1 million contribution for
development aid to Chile,
; Geneen himself took the
'position that the million-dol-
lar offer was a "dual" offer:
i It might have been allocated
by the government toward
financing an anti-Allende coal-
ition in the Chilean Congress,
or it might have been used for
development aid. "It was in-
tended to be a very open of-
fer," be said. .
"If I were Dr. Allende," in-
terjected Sen. Clifford P. Case
(B-N.J.), "and a non-friend of-
fered a plan to a group of my
enemies to defeat Case?or, if
Case should win, to -make him
vote straight?then I would
regard that as ProVeCative."
Gepeen. responded: "That
depends on what the second
plan was."
"I don't think rd ever get.
over the first plan," Case
snapped back.
"As the recprd now stands."
said Church, "the beneficent
plan, the constructive propo-
sal, was never communicated
to the government and died
somewhere as it was being
Passed down to subordinates
al the company ?. . , Why was
something so serious , never
communicated to the govern-
ment?"
Geneen could not explain
the communication lapse with-
In ITT. ,
In his prepared statement
Geneen said he used. the mag-
nitude of "up to seven figures"
In order "to show a serious
WASHINGTON STAR
3 April 1973
Church to Seek
CIA Donor Ban
By ,IERMIAlt O'LEARY
Star-NeWs Stan Writer
'Chairman Frank Church, I)-
Idaho, of the Senate multina-.
tional corporations SUIX0M-
? mittee plans to introduce leg-
islation that would make it a
? federal crime for a business,
Organization to contribute
money to financd operations
of the Central Intelligence
Agency.
Church announced this in-
tent, at the close yesterday of
two weeks of bearings into the
machinations of ITT Corp.
with CIA and other govern-
ment agencies in the internal
affairs of Chile. The hearings
produced testimony that ITT
and CIA approached each
other at different times in the
Chilean election period of 1970
with suggestions for affecting
the outcome of Ihe election
and the Chilean economy.
Bilt Church indicated that
the subcommittee would not
pursue his threat to send the
transcript of the hearings to
the Justice Department on
? suspicion of perjury: Church
announced last week that he
believed "someone is lying"
when testimony of ITT execu-
tives appeared to conflict, with
that of U.S. government wit-
nesses and other ITT officials.
Church said the inconsisten-
'cies now seem to he due to
lapses of time or memory, or
a failure to communicate
am
ong those involved in the
sensational ITT documents on
Chile.
"I feel the wider the dis-
tance between big business!'
and the CIA the better for all
concerned," Church declared.
"Legislation to accomplish
this may be one of the better
outgrowths of these hearings.
We cannot have this inces-
tuous relationship between,
the CIA and U.S. companies
operating abroad."
Harold S. Geneen, ITT
board chairman, occupied the
witness chair for most of yes-
terday as the subcommittee
wound up the hearings.
Geneen's testimony was that
there were two distinct phas--
es to ITT's thinking on Chile
in 1970: One in the sumtner
when Marxist Salvador Al-
lende was campaigning on a
platform of expropriation that
ITT believed would cost the
corporation its $153 million
investment; the other during
the autumn when Allende
looked to be a sure winner
requiring only confirmation
by the Chilean Congress.
Geneen accepted testimony
of CIA agent William V. Woe
that Geneen had offered a
? substantial sum for any gov-
ernment plan that would
block Allende, although be
said he did not recall doing it.
But Gencen said that money
offer "died" when Broe re-
jected the offer in July 1970. -
intent and to gain serious at-
tention from the Govern-
Ment."
In presenting ITT's role in
the Chilean affair, Geneen
said, "all that. ITT did was to
Present its views, concerns,
and ideas to various depart-
ments of the U.S. government.
This is not only its right, but
also its obligation."
Al; one point Church inter-
jected. "If all this involved
was petitioning the govern-
ment, *by did you seek out
the CIA?" Geneen responded:
"Because I think they are
good suppliers of information
In this area."
The ITT chairman said he
did not realize in meeting with
Broe, the CIA's chief of
clandestine services for Latin
Americo, whet the distinction
was between the clandestine
and intelligence services of
CIA. The purpose for which
he requested the meeting,
Geneen said, was to get cur-
rent information on political
developments in Chile.
Normally intelligence brief-
ings by the CIA are provided
by its Intelligence wing, the
directorate of intelligence.
Thc directorate of plans, for
which Broe worked, is mainly
responsible for covert opera
lions such as political or eco-
"The next offer was entire-
ly separate and had a dual
purpose," Geneen testified. ?
"The offer of $1 million was
openly presented to two de-
partrrients of government
(The National Security Coun-
cil and the State Department).
. It was to make Allende more
receptive to us and other'
companies if he Was elected
or to help the Chileans arrive
at a democratic coalition solu-
tion. The $1 million figure was
only a measurement, of our
willingness to join any gov-
ernment program."
Sen. Clifford Case, Tt-N.J.,
said, "If I heard someone was
offering $1 million to defeat
me or make me vote better,
I'd take that as a piovoca-'
tion."
"That depends on the see-
ond part of the plan," Geneep
said. ?
"I don't think I'd get over
the first plan," Case replied.
9
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Approved For Release 2001/08/07 : CIA-RDP77-00432R000100130001-2
FIF NEW YORK TIRES, SATURDAY, MARCH 24, 1973
ernarks by Principals in Water ate
Swint In The Nnn.'inrk TImmt
WASHINGTON, March 23
?Following are the text of
a letter from James W. Mc-
Cord Jr. to Chief Judge John
sirica of the United States
District Court and excerpts
from prepared statements by
Judge Sirica made in sen-
treeing six 1Vatergate con,
spirators and from a state-
meet at .c fencing by one
of them, E. Howard Runt
Jr.:
James W. McCord Jr.
Certain questions have
been posed to me from your
honor throegh the probation
officer. dealing with details
of the rase, motivations,
intent, mitigating circum-
stances.
In endeavoring to respond
to these questions. I am
whipsawed in a variety of
legalities. First, I may be
called before a Senate com-
mittee investigating this
matter. Secondly, I may be
involved in a civil suit, and
thirdly there may be a new
trial at some Mere date.
Fourthly, the probation of-
ficer may be called before
the Senate committee to pre-
sent testimony regarding
what may otherwise be a
privileged communication be-
tween defendant. and judge.
As I answered certain
questions to the probation
officer, ,it is possible such
answers could become a
matter of record in the Sen-
ate and therefore available
for use in the other proceed-
ings just described.
My answers would, it
would seem to me, violate
my Fifth Amendment rights,
and possibly my Sixth
Amendment right to counsel
and possibly other rights.
Penalty for Noncooperation
On the other hand, to fail
to answer your questions
may appear to be noncoop-
eration, and I can therefore
expect a much more severe
sentence.
There arc other considera-
tiOns which are not to he
lightly taken. Several mem-
bers of my family have ex-
pressed fear for my life if
I disclose knowledge of the
facts in this matter, either
publicly or to any govern-
ment represent alive. judge Sidra
Whereas I do not share Statement on sentencing
their concerns t.o the Same
degree, nevertheless, I do he- G. Gordon Liddy:
lieve that retaliatory meas- The court, at this time,
ores will he taken against wishes to briefly state some
my aml my of the; considerations which
friends should I diSOOSe
110 , I ti trt it% Sett- potential offenders.
1. There was political pros- the knowing and dchhc?rme
sure applied to the defend- violation of laws deserves a
, ants to plead guilty and re- greater determination than a
'main silent. 'simple careless or uncompre-
i 2. Perjury occurred during bending violation.
the trial in matters highly It is appropriate to con-
material to the very struc- sider, in addition, the nature
tore, orientation and impact of the misconduct, and the
of the Government's case, gravity of the offenses corn-
and to the motivation and in- mated. The indictment con-
tent of the defendants. tains two counts of burglary,
3 Others involved in the a serious crime. Other counts
Watergate operation were
not identified during the
trial, when they could have
been those testifying.
4. The Watergate opera-
tion was not a C.I.A. opera-
tion. The Cubans may have
been misled by others into
believing that it was a C.I.A.
operation. I know for a fact
that it was not.
5. Some statements were
unfortunately made by wit-
ness which left the court
with the impression that he
was stating untruths, or
withholding facts of his
knowledge, vvhen in fact only
refer to Title 18 United
States Code Sec. 2511 con-
cerning the privacy of oral
and wire communications.
The Senate report on the bill
which included what is now
Sec. 2511 contained the fol- '
lowing statement:
'The tremendous scientific
and technological develop-
ments that have taken place
In the last century have made
possible today the widespread
use and abuse of electronic
surveillance techniques. As a
result of these developments,
privacy of communication is
'seriously jeopardized I?
honest errors of memory these techniques of survei -
were involved. lance. No longer is it possible
6. My motivatinns were dif- for each man to retreat into
remit than those of the his home and be left alone.
others involved, but were not Every spoken word relating
limited to, or simply those of- to each man's personal,
fered in my defense during martital, religious, political or
the trial. This is no fault of commercial concerns can be
my attorneys, hut of the cir- intercepted by an unseen
cumstances ender which we ? auditor and turned against ,
the speaker to the auditor's
advantage."
Sec. 2511 was designed to
prevent this great evil. Ob-
viously, however, it. has not
stopped these defendants
from knowingly committing
the acts of which they stand
convicted: From the evidence
presented in the course of
these proceedings, the court
has reached the. opinion that
the crimes committed by
these defendants can only be
. described as sordid, despic-
`ble and thoroughly reprehen-
. 511;1'4 court has also consid-
ered the purposes to be
served by imposing sentences
in this case. In view of the
foregoing, and taking into
account. the background of the
defendants, it seems obvious
to the cOurt that rehabilita-
tion is not the principal pur-
pose to be served. Nor is it
appi-oprinte to impose sen-
tence here with the intent
of satisfying someone's de-
sire for reprisal.
In this matter, the
sentences should. be imposed
had to prepare my defense.
Private Talk Sought
Following sentence, I
would. appreciate the oppor-
tunity to talk to you private-
ly in chambers. Since I can-
not feel confident in talking
with an F.B.I. agent, in testi-
fying before a grand jury
whose U. S. attorneys work
for the Department of Jus-
tice, or in talking with other
Government representatives,
such a discussion with you
would be of assistance to me.
I have not discussed the
above with my attorneys as
a matter of protection for
them.
I give this statement free-
ly and voluntarily, felly real-
izing that I may be prose-
cuted for giving a false state-
ment to a judicial official, If
the statements herein are
knowingly untrue. The state-
ments are true and correct to
the best of my knowledge
and belief.
with an eye toward a just
punishment for the grave of-
fenses committed and toward
the deterrent effect the sen-
tences might have on other
such facts. Such retaliation teneing decisions in this Numerous other considera-
could destroy careers, in- ca.4,. . ? tines, both favorable and un-
come, and reputations of per- In the first instance, it favorable to the defendants,
sons who are innocent of seems Hear that. the defend- halm played a part in the
any guilt whatever, ants realized, at the time court's decisions.
ite that as it. may, in the
they acted
' that. their con-
interest of justice, and the
interest of restoring faith in
the criminal justice system,
which faith has been severely
damaged in this case, I will
Stlie the following to you at
this time which I hope may
be of help to you in meting
duct violated the law Now,
it is true that "ignorance of
the law is no excuse" and
that one may he held ac-
countable for a failure to
obey the law whether he has
read the statute books or
not. Despite this fact, how-
ever, the court believes that
jest ice this case.
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Statement on Sentencing
Hunt, Bernard L. Bar-
ker, Eugenio It. Marti-
nez, Frank A. Sturgis,
and Virgilio R. Gon-
zalez.
With respect to the five
iencing
defendants who have. entered
guilty pleas, the court finds
that it requires more detailed
information before it can ?
make a final determination
of the sentences to be im-
posed. The court will there-
fore implement at this time,
the provisions of Title 18
United States Code Sec.
4208(B):
The effect of the court's
ruling, then, is this:
?irst: Each of you five
fendants now before me
provisionally committed
the maximum sentence
imprisonment prescribed
law for your offenses.
Second: A study will be
conducted under the direc-
tion of the Bureau of Prisons.
Within three months, the
court will be furnished with
the results of this study to-
gether with any recommenda-
tions made by the director of
the Bureau of Prisons. Should
more than three months be
required, the court may
grant time for further study
up to an additional three
months.
Third: Once the Studies
with respect to each defend-
ant are completed and the
court has analyzed the infor-
mation contained therein, the
court will make a final dis-
position of your cases. The
court will have basically
three alternatives: (1) to af-
firm the sentence of impris-
onment originally imposed,
that is, the maximum sen-
tence, (2) To reduce the sen-
tence of imprisonment as the
court deems appropriate, or
(3) To place the defendant on
probation. In any case, the
terms of sentence will begin
to run from the date of
original commitment.
.1 have carefully studied
this pre-sentence reports and
the trial transcripts. Among
- other timings, I have taken
into consideration, and will
keep in mind, the fact that
each of you voluntarily en-
tered pleas of guilty. On the
other side of the scale, how-
ever. is the fact that none of
I you have been willing tol
give the Government or other
appropriate authorities any
substantial help in trying
this case or in investigating
the activities which were the
subject, of this case.
Now I want to speak
plainly about this matter.
You will all no doubt be
given an opportunity to pro-
vide information to the
grand jury which has been,
and still is, investigating the
"Watergate affair" and to
the Senate Select Committee
On presidential Campaign
Activities. I sincerely hope
that each of you will take
full advantage of any such
opportunity.
My sentiments in this re-
gard are identical to those
expressed on February 25th
of this year by Judge War-
ren J. Ferguson. R United
States District Jiidge In 1 Os
tie-
are
for
of I
by
10
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Angeles, California, and a
man for whom I have the
highest admiration. Judge
Ferguson has before him a
matter which is. in many re-
spects, analogous to this
Case.
That proceeding grew out
of certain unlawful transac-
tions revealed a few years
ago involving a onetime ser-
geant major of the Army.
This man and others pleaded
guilty before Judge Fergu-
son on the 28th to an Infor-
mation charging them with
fraud and corruption Irt the.
operation of United States
military clubs in parts of Eu-
rope, Vietnam and the
United States. At the time
of the plea, Judge Ferguson
made a statement which I
am going to read now. He
has stated the matter ex-
ceptionally well.
"There are various sen-
tencing philosophies to deter
other people from commit-
ting crime, to deter the de-
fendant himself from com-
mitting other crimes against
the Government, to rehabili-
tate people and all of the
other various philosophical
reasons why judges sentence
people.
"In this case. for various
reasons which are not neces-
sary for the court to express
from the bench, I ant more
concerned that the activities
to which you have pled
guilty will not occur in the
future by any other sergeant
of the Army, sergeant major
of the Army, any master ser-
geant of the Army, or any.
staff sergeant of the Army
or anybody else in the Mili-
tary system and I don't
know whether or not the
three of you are isolated in-,
cidents of the things to
which you have pled guilty
and whether or not it is the
system which permitted this
activity to take place.
"The things we say here,
if I can paraphrase a great
President, will not be long
remembered. You and I are
individuals and life is pretty
slender and what I do to you
basically is not going to af-
fect other sergeant majors in
the Army and another war
that comes along in our
future, and they will come. ,
"But I want to do all I.
can to insure that in future
.wars or future military op-
erations that the system, the
system itself, prohibits the
conduct to which you have
entered your guilty pleas.
Because if that is accom-
plished then there has been
a benefit to the Government,
No Gain From 'Flesh'
"I don't think the Govern-
ment wants a pound of flesh
nut of you. That is very little
benefit to the Government.
That is very little benefit to
society. That is very little
benefit to anybody except an
expression that society does
not approve to the things
you have entered your guilty
pleas to.
"But you will pass on and
there will be other people
taking your place and Wool-
ridge will be forgotten about
and Higdon will be forgotten
about and nobody will re-
member Bass as ? individuals.
There will be a flurry of pub-
licity as a result of your
guilty pleas. ;laterally, but
in a week or so it will he
forgotten about,
"But you sec, I don't want
it forgotten. So I have told
your attorneys that the sen-
tence that I will impose upon
you?and I am making no
promise of leniency; I want
that clearly and positively
understood; I atil making no
promise of leniency?but.the
sentence I will impose will
depend primarily on whether
or not yr.A1 cooperate with
the permanent Subcommittee
on Investigation of the Unit-
ed States Senate and if you
are asked to testify and give
evidence before that perma-
nent subcommittee and if
you testify openly and com-
pletely, regardless of' what
the implications are to your-
self or to anyone else or to '
the system so that the
branch of the Government
which can take corrective
action is able to take action
.so that this activity simply
does not occur again, then
I will take that into consid-
eration because I want to
see something beneficial to,
the Government come out of
these proceedings.
Now, I don't know what
the subcommittee will do but
I fully expect you to cooper-
ate absolutely, completely
and entirety with whoever
from that subcommittee,
whether it is a Senator, or
whether it is a staff investi-
gator. Whoever it is who in-
terrogates you, you will
openly and honestly testify.
Now I believe that the
"Watergate affair," the sub-,
ject of this trial, should not
be forgotten. Some good can
and should come from a rev-
elation of sinister conduct
whenever and wherever such
conduct exists.
I am convinced that the',
greatest benefit that can
come from this prosecution
will be its Impact as a spur
to corrective action so that ?
the type of activities re-,,
vealed by the evidence at
trial will not be repeated in
our nation. For these rea-
sons, I recommend your full
cooperation with the grand!
jury and the Senate Select
Committee.
You must understand that;
I hold out no promises on
hopes of any kind to you in,
this matter, but I do say that,
should you decide to speak,
freely, I would have to weigh
that factor in appraising
what sentence will be finally;
Imposed in each case. Other ,
factors will, of course, be.
considered, but I mention;
this one because it is one,
over which you have control.,
E. Howard Hunt Jr.
I stand before you, a man
convicted first by the press,,
then by my own admissions,
freely made even before the
beginning of my trial. For 26.
years I served my country,
honorably and with devo-
tion: first as a naval officer,
on the wartime North Atlan-
tic, then as an Air Force of-
ficer in China. And finally,:
Its an officer of the Central:
Intelligence Agency combat-
ing our country's enemies
abroad.
In my entire life I was,
never charged with a crime,
much less convicted of one.
Since the 17th of June 1972,
I lost my employment, then.
my beloved wife, both int
consequence of my involve-:
ment in the Watergate affair.;
Today I stand before the bar,.
of justice alone, nearly friend-
less, ridiculed, disgraced, de-1
stroyed as a man.
These have been a few of
the many tragic consequences'
of My participation in the:
Watergate affair, and they i
have been visited upon me in I
overwhelming measure.
What I did was wrong, un-
questionably wrong in the'
eyes of the law, and I can ac-
cept that. For the last eight
months I have suffered one
ever-deepening conciousness
of guilt, of responsibility for
my acts, and of the drastic
penalties they entail. I pray.
however that this court?and
the American people?can;
accept my statement today,
that my motives were not?
evil.
.1
An 'Honorable' Life
. The offenses I have freely1
admitted are the flrst in a:
life of blameless and 'honor-
able conduct. As a man al-;
ready destroyed by the cm-,
sequences of his acts I can,
represent no threat to ours
society, now or at any con.'
ceivable future time. And as
? to the factor of deterrence,
your honor, the Watergate.
case has been so publicized.
that I believe it fair to say.
the American public knows
that political offenses are not,
to he tolerated by our socie-
ty within our democratic
system.
The American public knows
also that because of what I.
did, I have lost virtually
everything that I cherished
in life?my wife, my job, my
'reputation. Surely, these tragic
consequences will serve as an,
effective deterrent to any-
'one else who might contem-:
plate engaging in a similar' ?
activity.
The offenses to which I
pleaded. guilty even before
trial began were not crimes'
of .violence. To he sure, they,
were an affront to the state,
but not to the body of a man
or to his property. The real'
victims of the Watergate cony
spiracy, your honor, as it hat
turned out, are the conspira=
tors themselves. But there
are other prospective victims.
Plea for the Children
Your honor, I am the
father of four children, the
youngest a boy of 9. Had my.
wife and I not lost our em-
ployment because of Water.
gate involvement, she would
not have sought Investment,
security for our family IA
Chicago where she was
killed last December. My
Children's knowledge of the
reason for her death is in-
eradicable?as is mine. Four
children without a mother. t
ask they they not lose their
father, as well.
Your honor, I cannot be-
lieve the ends of iiisticti
would be well served by in,
carcerating me. To do so
would add four more vic-
tims, to the disastrous train
of events in which I was in
'volved. I say to you, in all
candor, that my family des-
perately needs me at this
time. My problems are
unique and real, and your
honor knows what they are.
My probation officer has dis?-
cussed them with me at
some length.
I have spent almost an
entire lifetime helping and'
serving my country, in war
and peace. I am the one who
now needs help. Throughout
the civilized world we are,
renowned for our American,
system of justice. Especially
honored is our judicial con-
cept of justice tempered with:
mercy. Mercy, your honor,,
not vengeance and reprisal,
as in some lands. It is this:
revered 'tradition of mercy
that I ask your honor to re-
member while you ponder
my fate.
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eft MIDI ?Tref STAR
26 earth 1973
'Hy JEREMIAH O'LEARY
Stnr.Nevcs Stncf Writer
'DiSillIIMODIDerit set in early
for James W. McCord with the
Woe that befell him after the
Watergate burglary.
,Several times after his or-
rest in June, according to
sources close to the political
Controversy, the 53-year-old
former security chief for Pres-
ident Nixon's re-election com-
mittee was on the verge of
blowing the whistle on the
whole operation.
? He now seems on the verge
of telling everything he knows
about who ordered the burgla-
ry and hugging of Democratic
National Committee headquar-
ters to U.S. District Judge
John J. Sirica.
McCord, a silent type. of
than with e solid background
as an Army officer and as an
agent for the FBI and CIA,
kept his thoughts largely to
himself after he and his
four-man "Cuban contingent"
were caught inside the Water-
gate offices of the Democratic
party.
But those who were in con-
tact with him say that it be-
ceme increasingly apparent
that McCord was feeling aban-
doned. betrayed and expected
to pay an unacceptable price
for loyalty to his preceptors.
"Ile came very, very close
to speaking up several times
during the investigation and
trial," said one source. "It
bothered him that nobody
tame forward to offer him a
deal."
The picture painted of Mc-
Cord by this source was that
of a man who bad done what
he was told to do and had
gotten caught. But the source
said McCord evidently antici-
pated he would get more as-
eurances than he did of securi-
ty for his family or something
solid in the way of promises
for a fairly short prison term.
It obviously bothered him,
from his own words in the
bombshell letter to Judge She-
en, that there were others in-
volved in the conspiracy who
were never implicated public-
ly. He and the four Miamians,
along with defendants E. How-
Mei Hunt and G. Gordon Lid-
dy, were being asked to face
;punishment alone and in what
'be considered an atmosphere
of pressure and perjury. More-
over, McCord felt he could not
trust either the U.S. Attor-
ney's Office or the FBI to hear
his story.
McCord, according to insid-
ers, felt badly about implica-
tions that the Watergate affair for the CIA.
may have been a CIA opera- It is understood that the four
tion and was troubled about seem to accept that they are
possible harm to his former going to remain in jail and
agency's reputation. In addi- they are prepared to do so as
tion, as be suggested in his long as their families are tak-
letter to the judge, he felt en care of. Those who have
compassion for the fear Miami talked with them say their
Men who thought they were on state of mind has not changed
a mission for the CIA and since their arrest.
found themselves at the center They are not expected to
o fa major domestic political break their silence until they
of a major domestic political see that the promises made to
them cannot be fulfilled, but
McCord evidently expected' insiders say they really don't
the chief prosecutor, Asst. have much to offer in return
U.S. Atty. Earl J. Silbert to for leniency. While McCord
tergate operation and may cite e '
'grand jury and pre-trialsources of pressure and por-
es of the case with some kind sons who allegedly committed
of deal. . perjury, the four Miamians
Those who have talked with, are said to know only Hunt. Henry B. Betliblatt, attorney
e
McCord say that he seemed to for the four Miamians said
tod
anticipate that he Would be ay he has not seen' them
? offered a prosecution recome there for about two weeks and that
mendation for an easier sen-
.?ere are DO plans for seeking '
tence in return for some mea-. a court hearing to show that ,
Sure of cooperation from him.; they were pressured or off- ?
These sources say no such of- ered either money or dere-
fer was made by the prosecu-
tion.
endy to plead guilty.
Liddy, former finance coun-
Rothblatt held to the opinion
sel to the Nixon campaign that his clients may have
committee, is likened by those been offered inducements to
close to him since his arrest as remain silent about their rale
a "soldier" who is not waver-
ing in his determination to and contacts in the Water-
gate affair, but be said he
? approach him during the may know of others in the Wa-
take 'his punishment: a $40,000
fine and from 6 to 20 years in
prison. Liddy was silent, even
at his sentencing.
Hunt, no longer the swash-
buckling former CIA agent
and White House operative,
had opted to plead guilty,
along with the Miami four, but
in the end be pleaded for mer-
cy because he had lost "my
wife, my job, ney reputation."
Unlike Liddy, Hunt and
McCord, who supposedly went
into the Watergate operation
with full awareness of what
they were doing and why, the
Miami four are said by asso-
ciates to have never known
precisely why they were on
the Watergate caper.
Bernard Barker, Frank
Sturgis, Eugenio R. Martinez
and Virgilio R. Gonzalez are
described as men who knew
Hunt from the Bay of Pigs era
in Florida when they were ac-
, tive in the anti-Castro move-
Meat, and knew Hunt as a
government man, a CIA agenf.
bad no true knowledge that
-such offers were made. The
previously mentioned figure
of $1,000 a month for each of
the four for as long as they
remained in prison, B,othblatt
said, was probably just "a
figure pulled out of the hat."
He agreed that their only !
contact was probably with
Hunt and speculated that Hunt
might have encouraged them
to believe that they and. their
families "would be taken care
of" when the furore over the
case died down. He said he
knew of no secret meetings
in Arlington Towers at the
time of the trial and said it
was well known that bath he
and Barker had taken apart-
ments there during that
period.
? "They have not. approached
Me about re-opening the case
on the grounds of any obstruc-
tion of justice, such as an
offer of money of reduced
They were accustomed to sentences later, and I have
clandestine operations and not approached them," Roth-
may even have considered blett said.
their -act of burglary was a He characterized published
patriotic deed. They had bro- reports that said that he did
ken the law for the U.S. gov- intend to re-enter the ease and
ernment before. McCord's let- seek a bearing as being "an
ter unequivocally states they out-of-date version of an off-
were deceived into thinking the-record discussion" he had
the Watergate operation was with reporters. Bolliblatt said
he had discussed this possi-
12
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bility weeks ago led that it
became a dead issue when his
clients decided to plead guilty
and take their sentences.
Whether the four Miamians
will continue to maintain their
silence remains to be seen,
Bothblat teed, addiarl that
they don't knew meth more
about the Watergate ease than
their involvement at the Hunte
McCord level.
McCord was said to have
seen little of the Miatei group
except for the actual operation
of planning the Watergate
break-in and then carrying it
out.
WASHINGTON POST
27 March 1973
iN -n
I
kAH
JrilaTqfr,"9
1MT1
-
iLP
By Bob Wondward
and Carl Bernstein
Witshinnton pont Staff Writ rrn
Senate sources confirmed
yesterday that Jatnes W.
McCord Jr. has told investi-
gators that two high aides
:of President Nixon had ad-
vance knowledge of the
Watergate bugging. A Re-
publican source desmibed
McCord's allegations as
"convincing, disturb but g
and supported by some
documentation?
That source said IVErCord
had described the nature of
the documentation but had not
yet shown it to investigators.
The two officials named by
McCord were presidential
counsel John Dean III mid
former white House aide .leb
Stuart Magruder, who was
first. acting director and then
the No. 2 man in Mr. Nixon's
re-election drive.
Watergate conspirator Mc-
Cord, formerly 1 he security
chief for Mr, Nixon's re-elec-
tion committee, made the
charges against Dean and
Magruder in long sessions
Friday and Saturday with in-
vestigators from the Senate
select committee probing the
Watergate Imeeine and other
alleged acts of political espio-
nage and sabotage.
McCord Implicated Dealt In
I he planning or the blwrioc!
mu' imlicated that IVI:wrteter
commitiell perjury at the
Watergate trial when he fltti
he had no knolvteae f the
before the Jam- 17
arrests a t the Demort
Watergate headquarters, the
sonrces said.
President Nixon, who lost
summer assigned Dean to con-
duct a White 1 low-e invertiva.
Hon of the Watergate lint:gleg,
personally telephoned Ids
Approved For Release 2001/08/07 : CIA-RDP77-00432R000100.13000112
counsel yesterdny and express-
ed "nbsolute rind. total confi-
dence" in Dean, according to
Presidential press secretary
. Ronald L. Ziegler.
"Following that conversa-
tion." Ziegler said, "and bnsed
on Bine conversation, I will
again flatly deny any prior
knowlelge on the part of Mr.
Dean regarding the Watergate,
matter."
-Magruder. who served as the
deputy to Mr. Nixon's cam-
paign mtmager, former Attor-
ney General John N. Mitchell,
had already denied McCord's
allegations.
In other developments yes-
terday:
? Sen. Lowell P. Weicker
(R-Conn.), one of the seven
members of the Senate Water-
gate tommittee, said he has
established ledependently that
White House aides were in-
volved in the bugging, as well
as other sabotage and espio-
nage activities against the
Democrats. Weicker said he
has no evidence that President
Nixon condoned such "illegal
practices that demean the
American process," but the
senator expressed "a thor-
ough disgust with the men
around the President."
? Assistant United States
Attorney' Earl J. Silbert said
last night the government had
offered to drop most of the
charges against McCord in re-
turn for full cooperation in
proSecution of the case. Sit-,
bert said the offer was made
before the Nov. 7 election and
McCord turned it down. In
addition, Silbert said he would
issue a full statement on the
negotiations with McCord to-
day.
? During a closed-door
meeting, members of the Sen-
ate's Watergate investigating
committee were briefed on
McCord's information and
'voted to allow live television
and he confirmed telling Sen-
ate investigators that Dean
and Magruder had previous
knowledge of the bugging. .
? ? White House press sec-
retary Ziegler confirmed a re-
port that Dean called acting
FBI director L. Patrick Gray
III shortly after Gray told a
Senate hearing that Dean had
"probably" lied to FBI agents
In the Watergate investigation.
Gray refused Dean's request
that he "correct" his state-
ment, Ziegler said. He said
President Nixon still supports
Gray's nomination, which ap-
pears to be in grave danger
of being rejected.
? Attorney General Richard
G. Kleindienst said McCord's
allegations have contained
"nothing new so far that was
not covered by ?iir investiga-
tion" of the Watergate bug-
ging. "I'm just as certain as I
can be that Magruder and
Dean didn't know anything
about it," Kleindienst said. A
Justice Department spokesman
said the FBI received no leads
suggesting involvement by
Dean in the bugging, and that
Magruder's role in the cam-
paign had been scrutinized by
the ?FBI and grand jury with-
out any criminal charges being
brought against him.
? It was learned that mem-
bers of the Senate Republican
leadership have advised the
President to permit Dean to
testify before the select in-
vestigating committee at pub-
lic hearings. The President has
said that he will not let Dean
jor any other present or former
Mille House aide appear be-
1 fore any congressional cone
mittee.
Sen. Vireicker's - comments
appeared to reflect increasing
unhappiness among 'Senate
Republicans abeut the White
House. Another GOP senator,
who asked not to be named,
described the recent Water-
coverage of the committee's gate disclosures as "absolutely
upcoming hearings. Sen. Sam appalling+, and said "the Pres',
J. Ervin, chairman of the sesi dent would he well advised tol
lect committee, said the hear-, clean out his house."
ings definitely will begin he. Weicker, who has been Con-
fore May and other members
ducting his own inquiry into
the Watergate ease and relat-
ed matters since his appoint-
ment to the select committee,
said his preliminary informa-
tion alone is sufficient "to
come forth with some sort of
sensational disclosures."
Senate sources familiar with
Weicker's inquiry said he has
developed "Pretty hard , evi-
dence" on White Home in-
velvement in the bugging and
other undercover activities.
In comments to reporters
expressed hope they will begin
in two or three weeks with
McCord as one of the lead wit-
nesses.
? E. Howard Hunt Jr., an-
other Watergate conspirator,
was reportedly considering
providing information about
the hugging, but will refuse to
voluntarily talk to the Senate
committee because of a fear of
leaks in the press, according
to a source close to Hunt:
? G. Gordon Liddy, who the
government alleged was the
"boss" of the Watergate ow a- ti
a- yesterday,latsprc Wf ievelicic
oltatrionobosetrytielde
lion. took the Fifth Amend- law "is not the only issue in-.
nl"t " "es yesterday as he volved, although some people'
appeared before the federal in the administration would
grand jury which yesterday like to have it drawn that way,
reopened its investigation and as narrowly as possible." He
asked him about the possible added: "It's just as bad in my
Involvement of others, book for certain persons at
? Washington Star-News the presidential level to con-
Staff Writer m
Mary eGrory sone illegal psssitses . . I
said that she encountered Mc- "
don't Rive a damn if there's a
Cord yesterday coming out of
a Cleveland Park (IA1506
"Does the Watergate lead di-
rectly to the President?"
'Weicker was asked. He
replied: "Well, I am not pre-
pared to go ahead and name
any names unless I have the
facts to back it up, Do I think
that I will have the facts find
'Will there be other names?
The answer is yes."
"Other names . in the
White House?" the senator
was asked. "That's right," he
replied. "Do I have a broader
picture that I am trying to
substantiate? The answer is
yes. Do I think it goes beyond
Watergate? The answer is yes.
Somebody had to start it.
Somebody had to abet it. Mr.
Hunt and Mr. Liddy and Mr.
McCord i et al, didn't just get
together in a barroom one
night and decide they were go-
ing to do something gratuitous .
for the Republican Party.
Two sources familiar with
what McCord told Senate in-
vestigators confirmed ele-
ments of a Los Angeles Times'
account of McCord's state-
ments, including allegations
that:
? Other persons, probably
higher up in the White House
and the Nixon campaign or-
ganizations also had knowl-
edge of the hugging and
would later be named by Mc-
Cord.
?During his testimony at
the Watergate trial, Magruder
should have told of Dean's and
his own involvement.
? ? Watergate conspirator
Hunt persuaded tile four de-,
fendants from Miami to follow
his lead and plead guilty at
the Watergate trial.
? McCord himself was pres-
sured to plead guilty, but did
not.
If McCord's allegations art
true, they contradict testi-
mony at the trial by Magru-
der, who said he authorized
the payment of about $235,000
to Watergate conspirator
Liddy. Magruder said the
money was only to be used for
"legal" and "ethical" security
operations.
Magruder also testified that
Dean recommended Liddy for
the job as general counsel to
the Nixon committee, empha-
sizing that Dean had noted
that Liddy, an ex-FBI agent,
would be useful to assist in
any "Intelligence-gathering"
problems.
McCord Met with the Sen-
ate Watergate committee's
, chief counsel, Samuel Dash,
after a court bearing Friday
during which McCord said in
a letter that he had knowledge
of "perjury," "political pres-
sure" and the Involvement of
others in the Watergate.
Dc Van L. Shumway. a
spokesman for the Committee
for the Re-election of the Pres-
ident, said yesterday that the
leaks from the Senate investi-
gating committee "are irre-
sponsible and almost unfor-
giveable." (
"It is a star chamber pro-
ceedine, innocent per-
sons are ehaiged." Slim/may
law on the books against it or
aid. Ile snid it Is
4'unimnrinahle" that the in-
formation wne leaked to the
rims without the knowledge
of ThiSh. Dash has denied leak-
ing the inforemtion.
At a press conference Sun-
day, Dash announced that he
and McCord find met in two
long tripe,recorded sessions
Friday and Snturday; (hieing
.which McCord "named,
names" and began "supplying
a full and honest account",of
the bugging operation.
After yesterday's meeting of
The select Watergate investi-
lilting committee, Sen. How-
ard Bakek Jr., the ranking Re-
!publican on the panel, said the
members were convinced that
the leak did not corne from
.the committee or its staff. Bak-
er said Dash had called the
press conference to honor Mc-
Cord's regriest that his cooper-
ation with the committee be
announced. ?
Meanwhile, at the U.S. Dis-
trict Court building here yes-
terday, Watergate conspirator
Liddy invoked the Fifth
Amendment 20 times in testi-
mony before the grand jury.',
Liddy, who has been sen-
tenced to six years and eight
months for his role in the
'break-in and bugging of the
Democratic Party's Watergate
headquarters, was called be-
fore the federal grand jury In-
vestigating the incident- and
questioned by federal prosecu-
tors about. the possible in-
volvement of others, according
to the official minutes of the
one-horn, 15-minute session. '
Principal Assistant United
States Attorney Fsp-I J. Sil-
bert, the chief proseetttor in
the Watergate trial, refused to
comment when asked whether
Dean would be called before
the grand jury or whether Ma-
gruder, who testified prior to
the trial, would be called back.
In a related development,
Daniel E. Schultz, the attorney
for the four Miami defendants
who pleaded guilty at the
Watergate trial, issued a state-
ment denying a story in Sun-
day's Washington Post.
The story quoted informed
sources as saying that New
York attorney Henry B. Both-
Matt, formerly the attorney
for the four men, planned to
re-enter the case to seek a
new trial on grounds that they
were pressured to plead
"We have no desire to have
Mr. Rothblatt re-enter this case
on our behalf," acording to
the statement released by the
four men, Bernard Is Barker,
Frank A. Sturgis. Eugenio R.
Martinez and Virgin() Gonza-
lez.
The statement said that "no
such motion as 'as described
in the article . . . is hying con.
templated." The statement did
not deny that the boor men
were pressured to plead
guilty.
, It is known that Bothblatt
visited his termer clients at
least twice after Jan. 12 when
be {VW: fired as their nil r,61ey
because be would mit tel them
plead guilty.
ediffor Release 2001/08/07 3SA-RDP77-00432R000100130001-2
Approved For Release 2001/08/07 : CIA-RDP77-00432R000100130001-2
THE ECONOMIST MARCH V, t973
Vr
atergate
ng turning at the
The moment may be near for President
Nixon to unleash another .of those
salvoes of decisions and innovations
with which, from time to time during
his Presidency, he has reasserted and
shored up his dominance in American
politics. -Rio many things are going .?
wrong at once for him to be able
comfortably to float with the current
much longer. Prices seem out of hand
and the incomes policy has lost its
plausibility. The curious relationship of
the first Nixon Administration with the
International Telephone and Telegraph
Corporation, a matter which might by
now have been forgotten, is floating on
the surface again because of the inves-
tigating labours of two congressional
committees. These, incidentally, have
caught some. of Mr Nixon's former
servants in apparent falsehoods.
Mr L. Patrick Gray, the President's
nominee to be head of the Federal
Bureau of Investigation, runs into worse
and worse weather in the. hearings on
his appointment by the Senate Judi-
ciary Committee. By now his confirma-
tion looks improbable, and the hearings
are also having sonic side-effects.
Mr Gray put the White House in a
difficulty last week when the committee
was examiiM-ig his judgment in trusting
the counsel to the President, Mr John
Dean, to monitor the FBI investigation
of the bugging of the Democratic party
offices in the Watergate building last
June. One of the men since convicted,
Mr Howard Hunt, turned out to have
had an office in the White House at
the time. 'Mr Dean denied to Mr Gray
that he knew whether this was so or
not, at a time when Mr Dean had seen
to it that Mr Hunt's office was cleared
out, his safe forced and his papers and
effects put in Mr Dean's office for
safe-keeping. Under questioning last
week, Mr Gray conceded that Mr Dean
had " probably " told him a lie. Presi-
dent Nixon's spokesman was in the
undignified position on Monday of
having to defend the reputation of the
White House counsel against Mr Gray,
while reaffirming the President's sup-
port for Mr Gray's nomination to be
head of the country's chief law enforce-
ITICIlt agency.
Another side-effect of the Gray hear-
ings was that one of the men convicted
in the Watergate trial, Mr John
McCord, read about them and noted
that the FBI last summer was passing
the minutes of its Watergate interroga-
tions directly to Mr Dean, who was
passing them straight on to President
Nixon's re-election organisation. Mr
McCord drew the conclusion that the
foxes were in charge of .the henhouse.
As the day approached when he was
to receive his sentence, he was ponder-
ing whether its severity might not be
mitigated if he offered to disclose
Washington, DC
.10011/01,..?21?11
matters on which he had been silent
at his trial. Mr McCord wrote to the
judge asking to talk to him alone,
because, he said:
I cannot feel confident in talking with
an FBI agent, in testifying before a
grand jury whose US attorneys work
for the Department of Justice, or in
talking with other government
representatives.
The judge, Mr John Sirica, read
out Mr McCord's letter in open court
and put off sentencing him till Mr
McCord had had a chance to talk.
The letter offered answers to questions
which Judge Sirica had asked in vain
at the trial. The defendants, said Mr
McCord, had been put under" political
pressure" to shut up and plead guilty.
Perjury was committed at the trial.
Witnesses who could have identified
other persons involved in the Watergate
break-in did not do so. Mr McCord
went off on bail, and during the week-
end talked at length to the staff director
of Senator Ervin's committee of inquiry
into last year's campaign practices. Mr
McCord, a seasoned former agent of
the Central Intelligence Agency, now
54., who signed up under contract to
do security and intelligence work for
the Nixon campaign organisation, has
undoubtedly something to tell, and it
is likely to extend beyond the Water-
gate operation to some of the other
unconventional activities that marked
the campaign. But he does not look
like a prime mover and his knowledge
is probably limited.
A more. important person, and prob-
ably better informed, is Mr Gordon
Liddy, not so long ago an ambitious,
busy lawyer with a record of service
in the Treasury and the White House,
who was chief law officer to the Presi-
dent's re-election committee and might
now have been high in government
office if the Watergate raid had not
gone wrong. Like Mr McCord, Mr
Liddy refused 4.13 plead guilty. Unlike,
him, he has persisted in refusing to
talk, and Judge Sirica rewarded him
with a severe, not to say savage, sen-
tence of 20 years in prison, of which
he is obliged to serve an actual mini-
mum of six years and eight months,
together with a fine of $4o,000. The idea
behind the sentence, said the judge, had
nothing to do with rehabilitation : it
was to punish Mr Liddy.
From Mr Liddy the judge turned
to the remaining five defendants, those
who had pleaded guilty, and gave them
provisional sentences Of .enormous
extent?four of 4o years and one of
35?with an admonition to co-operate
in telling what they know before he'
has them back in three months' time'
for their definitive sentences.
Four of these ifive are not likely to
know much : they are 'froth Miami,
have 'been involved in the affairs of
the Cuban emigris from the Bay of
Pigs onward, and seem to have thought
.that.they were working for the CIA to
prevent a take-over of the United
States by friends of Mr Castro. The
fifth, Mr Howard Hunt, may know.
more. On Wednesday he was granted
immunity from further prosecution.
Now, unless he testifies, he risks charges
of contempt.
Judge Sirica, who used to' be thought
of as a somewhat unadventurous.
judicial luminary, has...limn a great
disappointment to the political authori-
ties. His refusal to be hoodwinked and
made a fool of at the trial was evidently
not anticipated, and he has now iput
all but one of the defendants under
heavy pr,-.3sure to disclose, to the extent
that they know, by whom and as part
of what operation they were hired and
directed.
Somehow it must have been possible
for the damage of the Watergate affair
to have been contained more effectively
than it has been: but how i'. Evidently
a campaign of disruption was embarked
upon against the Democrats at a time
when President Nixon's advisers were
still not quite sure of his re-election.
That the Watergate bugging was only
a part of it is well established. Under-
cover activities require undercover
financing, and the consequent general
impression of contempt for law
and for propriety is poisonous.. How
much President Nixon himself knew
about it is 'totally uncertain ; it is only
plain that the poison weht high up in
the Administration's hierarchy. Suppose,.
that, when the arrest of the team in:
the Watergate building brought to light
that something improper was g6ing nut
Mr Nixon had decided to confide in the
public," had admitted a complex of
irregularities committed in his name'
and had annonncM some disciplinary
dismissals, promising that nothing of
the kind would happen again. The,
immediate drama 'would have .been
fiercer, but he a:vould have survived and
he would have been re-elected.
For some reason not yet clear, Mr
Nixon decided not to take that course
but to treat the Watergate affair as
an isolated aberration due to the
stupidity of a few small men exceeding
their instructions: It was not a position
that could be sustained. As a result,
his servants have been drawn into a
series of evasive denials leading to
downright, untruths.
Had Mr Nixon taken the other
course nine months ago, the Democrats
might have made a little. more cam-
paign capital at the 'time. But now, in
the wake of their pathetic defeat in
the, presidential contest, they are get.
ting a new lease of life, smelling a
new battle on more favourable terrain
and even drawing unity from it. At
the same time a number of conflicts
between the executive branch and Con-
gress are coming to a head and .i\ir
Nixon needs all the congressional :zilies
he can get. The spirit of his natural
allies in Congress, both Republicans
and conservative Democrats, is being
soured by the poison spreading from
disclosures of unlawful campaign prac-
tices, corrupt money-raising and indis-
Approved For Release 2001/08/07 : CIA-RDP77-00432R000100130001-2
Approved For Release 2001/08/07 : CIA-RDP77-00432R000100130001-2,_
erect connections between some persons
in or formerly in the Administration
and some business concerns, together
with the demeaning lies and evasions
which the. existence of such things
'..makes necessary. it has all happened
terribly quickly. As next year's elections
draw ? near and unless something
changes, many Republicans in Congress
will begin to run for cover.
WASHINGTON POST
29 March 1973
0
1
To conclude that President Nixon
has resigned himself to the adverse
course of domestic politics would almost
certainly be an error, as Mr David
Broder pointed out this week in a
commentary in the Washington 'Pest.
Mr Nixon has powers and opportunities
of action available to ? nobody else. lie
can change course, introduce innoira-
dons and steal the opposition's clothes,
as he has done before. lie can even
clean house in an ostentatious manner,
if he chooses. The alternative, to sit
tight, defying Congress and where
necessary ignoring the courts, is prac-
ticable for him as a second-term
President, but it would have
tunate effects which he, without ;1004
can see as clearly as anyone...,.
By Bob Woodward and Carl Bernstein
wnmonicom eosi Staff Writers
James W. McCord Jr. testified under oath yesterday that
he was told by his principal superior in the Watergate con-
spiracy that former Attorney General John N. Mitchell had
personally approved plans to hug the Democrats' head-
quarters, according to Senate .sources.
McCord testified that his coconspirator and former
White House aide, G. Gordon Liddy, told him that Mitchell
had approved the plans and budget for the bugging while
Mitchell was still serving as attorney general in February,
1972, the sources said.
According to the sources, McCord indicated that he
knew of additional illegal wiretaps but. would not discuss
them with the Senate Watergate committee unless he is
granted immunity from further prosecution.
McCord also said that be had been told by Liddy and
former White House consultant E. Howard Hunt Jr., an-
other conspirator, that presidential counsel John W. Dean
lii and former White House assistant Job Stuart Magru-
der had advance knowledge of the. bugging operation, ac-
cording to the sources.
In addition, the sources reported, McCord testified that
be received "second-hand information" that Charles W.
Colson, then special counsel to President Nixon, knew too'
that the Democrats' Watergate headquarters were to be
placed under illegal electronic surveillance.
. Colson has denied any advance knowledge of the bug-
ging.
McCord's testimony was delivered in a 4?-hour, closed-
door meeting of the Senate's select committee investigat-
ing the Watergate bugging and related acts of political
espionage and sabotage. It. came as Him!. was appearing
before a grand jury at the same t hoe. (Details on Page
A221.
McCord' is scheduled to appear again before the Senate
committee next Wednesday. presumably when the com-
mittee will vole whether to grant him immunity from fur-
flier proseen I ion.
(Inv Senate sourer said that McCord's testimony about.
the alleged involvement of the high presidential aides was
hearsay because his knowledge came from Liddy and Hunt.
Another of the sources said that McCord was very posi-
tive about the information be received from Liddy about
Alitchell. "There was complete communication between
McCord and Liddy about the subject, the source said.
That source, however, cautioned that McCord's informa-
tion was not sufficient to prove illegal involvement of oth-
ers in the celebrated conspiracy.
The sources said that McCord, the former security co-
ordinator of the Committee for the Be-election of the
President, provided leads in his testimony that could pro-
vide additional information about alleged involvement of
those presidential aides.
In addition, the some-.es said
that McCord had . indicated
that .he could provide other
substantiation of his charges.
The sources described the
Involvement of Mitchell, Dean
and Madruder?described by
McCord?as "active," in the
words of one, "meaning that
they not only knew about it
but. were involved in aspects
of it.." .
DeVan L. Shumway, I h e
press spokesman for the Com-
mittee for the Be-election of
the President, also denied last
night, as he has in the past,
that any of the officials named
by McCord had any advance
knowledge of the Watergate
bugging.
, "Well, T think that again
that these are allegations that
are being leaked cut of a com-
mittee without anyone. bring
there to face his accusers and
that these allegations are false,
patently false. I think we've
made that clear in the past,"
Shmrtway said.
Shumway said the allega-
tions have all been publicly
denied previously by Mitchell.
Magruder. Dean and Colson
and "I cannot believe these
'nhlegaflo, to he anywnpre
near the truth." Simmway said
that the allegations Were not
surprising "considering the
circumstances under which
they were made."
Asked by a reporter if by
Circumstances he meant the
tact. that MeCord is facing a
prison sentence. S'humway
said: "Yes. that would be one
of the eircHmstaners."
Mitchell previously has de--
nied any advance knowledge
of the Watergate bugging.. He
could not he reariehed for com-
ment last night.
Commenting on the 41/2-hour
session with McCord. Sen.
Howard 14. Baker (II?Tenn.),
the acting chairman of yester-
day's meetine. said that. Me.
Cord was coo ierati'p and
Approved For Release 2001/0 . - - _0100130001-2
'vided "significant information
-,... covering a lot of territory."
Hunt and McCord?both for-
mer CIA employees?have
been implicated in apparently
unprecedented spying and in-
telligence gathering opera-
tions conducted against radi-
cal political movements, the
news media and the Demo-
cratic Party.
i Included are disruptive ac-
tivities aimed at Sc,,. Edmmul
IS. Miiskir (II). Maine), the im.
tial frontrunner for his party's
presidential nomination: spy-
ing and a bugging attempt
against Sen. George S. McCoy
ern. (D-S.D.), the eventual
nominee; seeking out informa-
tion on the personal life of
Sen. Edward M. Kennedy: an
alleged attempt to discredit
ITT lobbyist, Dita Beard's con-
troversial memo linking the
company's antitrust settlement
with a contribution for the Re-
Publican' convention; an inves-
tigation of syndicated colum-
nist Jack Anderson: investiga-
lions of leaks to the news me-
dia that, according to Time
Magazine, included tapping re
porters telephones: and infil-
tration of radical student,
groups and the Vietnam Vet.
erans Against, the War.
The latest. round of Water-
gate developments began last
Friday when McCord, limn
and the five other Watergate
conspirators were scheduled
i to be sentenerd hy Chief U.S.
'District Alder John J. Sirien.
' In open court, Strict, read a
letter he had received from
McCord who said he knew of
"political pressure," "perjury"
and the involvement of others
in the Watergate.
,
That afternoon and again on
Saturday afternoon, McCord
met voluntarily in secret ses-
sions with Samuel Dash, the
chief counsel of the Senate's
Watergate invest 'entitle. rum-
miller. Dash then announced
Approved For Release 2001/08/07 : CIA-RDP77-00432R000100130001-2
on Sunday at an unusual' press
conference that. McCord bad
"named names" of others who
allegedly had advance knowl-
edge of the hugging of the
DemerratS Watergate head-
quarters. hut Dash refused to
dierlosesthe tonnes, ?
.On Monday. The Lori 4nge-1
les Times first reported, and
other Senate sources later
confirmed, that. McCord had
named presidential counsel
Dean and termer White House
nide Magruder as having ad-
vance knowledge of the bug-
ging.
McCord then asked that he
he allowed to testify under
oath in the seven members of
the Senate 'Watergate commit-
tee. and yesterday's sessiqn
was arranged.
Magruder again denied to,
.The Wellineton Post last night!
WASHINGTON POST
29 March 1973
that. he had any advance infor-
mation about, the Watergate
bugging. Asked shout reporla
from some of his friends that
Magruder Might he' made a
"sacrificial lamb," in the Water-
gate case, Magruder answered:
"You mean by the White
!Iowa I haVe ahattittlely no
reason to suspect that. I'm not
worried."
The four persons named by
McCord were all high-ranking
presidential advisers or assist-
ants during the first four
years of the Nixon administra-
tion. ?
Mitchell was the princiriM
architect of Mr. Nixon's suc-
cessful 1968 campaign stra-
tegy and resigned as attorney
general to serve as the Presi-
dent's campaign manager In
the 1972 election. He then re-
signed as campaign manager
two weeks atter the Watergate
bugging, citing his wife's de-
mands that he leave politics
as the reason.
Dean, the director of all
White House legal matters, re-
ports directly to President NIX-
fiti anti 11, rt. Tiklatman, the
' White House chief of staff, tie
Is the only one of those
named by McCord who still
holds a White House or cab-
inet position.
It was Dean who recom-
mended to Magruder that
Liddy be hired as general
cotinsel of the Committee for
,the Re-Election of the Presi-
dent., according to Magruder's
'testimony at the Watergate
trial.
I Magruder, a former key assistant to Haldeman, left the
!White House to become the
Hunt, Granted Immunity, Talks
?
By Eugene L. Meyer
wnehingten rest SIAM Writer
'Watergate conspirator E.
Howard [hunt Jr. testified be-
fore a federal grand jury for
four hours yesterday amid in-
ions that he is cooperat-
ing by answering questions
asked by government, attor-
neys.
limit at first invoked the
:Hail Amendment, in answer
to six questions. He was then
taken before Chief U.S. Dis-
trict Judge John J. Sirica, who
granted him immunity from
further prosecution and sent
him back to the grand jury.
It could not be learned if
Hunt's testimony pointed to
the involvement of others in
(hr Watergate affair or other
alleged acts of political espion-
age and sabotage against the
Democrats in the 1972 presi-
dential campaign.
Hunt also testified for about
Ro minutes Tuesday afternoon
but principal Assistant U.S.
All MileY Earl J. Silbert de-
clined then, as he did yester-
NEW YORK TIMES
29 March 1973
A PLOT IS FEARED
BY MRS, MITCHELL
I Mrs. John N. Mitchell said
no Tuesday that she thought
Isomebody was trying to make
her husband "the goat" for the
Watergate scandal, and that
she was, not going to let that
happen.
"I fear for my husband," the
former Attorney General's wife
said. "I'm really seared. 7 have
a -definite reason. I can't tell
you why. But they're not going
to pin anything on him. I won't
10 them, and I don't give a
damn who gets hurt. I can
name names."
Mrs. Mitchell telephoned The
day, to give any idea of what
Hunt was telling the grand
Jun:. Hunt is to resume testi-
fying before the grand jury to-
day.
A source dose to Hunt said
yesterday that the 55-Year-old
former CIA agent may he will-
ing to provide information
about political spying beyond
the Watergate. To date the
prosecution has taken the pos-
ition that what spying and dis-
ruption it has heard of does
not violate any federal law.
Hunt has been implicated in
spying operations directed
against the two leading con-
tenders for the Democratic
presidential nomination last
year, Sen. Edmund S. Muskie
ID-Maine) and Sen.. George
McGovern (D-S.Dak.).
In addition, Hunt was in-
volved in gathering informa-
1 tion on the personal life of
Sen Edward M. Kennedy (1)-
Mass.). FBI files also show
that Hunt met secretly with
irr lobbyist Dna Beard last
March at. the /might ef the
controversy over the govern-
New York Times. She seemed
Ito have worked out exactly
what she wanted to say. She
said that she phoned because
?she was frightened. She would
not say of whom.
"If you hear that I'm sick
or can't talk, please, please, get
your reporters out to find me,"
she said. "Somebody might try
to shut me up."
She said that she felt yester-
day just as she did last June
when she was 'thrown to the
floor and stuck with a hypo-
dermic needle in Newport
Beach, Califs during what had
been a telephone conversation
with a reporter. Mr. Mitchell
?was in California for campaign
I That incident occurred the
Iweekend before Mrs. Mitchell
? told a reporter that she had
given her husband an ultimatum
to reign as bead of President
!Nixon's re-election campaign
or lose her. ?
16
ment's settlement of an anti-
trust case with the giant con-
glomerate.
Prior to granting immunity
to Hunt yesterday, Strica
asked Silbert to have the
court stenographer read the
.questions Hunt refused to an-
swer on the grounds that he
might incriminate himself.
? A reading of the grand jury
? minutes showed that. Silbert
had asked Hunt if anyone else
had prior knowledge of the
June 17 break-in at the Demo-
cratic National Committee's
Watergate headquarters be-
sides the seven Watergate
defendants; to whom logs of
wiretapped conversations
were given; where Hunt got
$8,500 that he gave to a lawyer
only hours after the police ar-
rested five men inside the
Watergate; whether Hunt. had
received more than the $8,500
and whether he had employed
anyone for political espionage
In addition to Thomas Greg-
ory, a college student Hunt
paid to spy on Muskie and Mc-
Govern imadmiarters.
Sirien also announced yes-
Mrs. Mitchell has accused
Steve King, a security official,
of throwing her to the floor,
kicking her, and jerking the
telephone cord from the wall.
Mr. King was later elevated
to head of security for the Com-
mittee for the Re-election of the
President after his boss, James
W. McCord Jr., the former se-
curity chief, was arrested in the
hugging attempt at Democratic
National Headgearters.
"King and !Leal Jahlonsky
called ljterbertl Kalmbach that
day," Mrs. Mitchell said yester-
day. "Kalmbach is the Presi-
dent's personal lawyer. Has
anyone ever explained that?"
Lea Jablonsky was then Mrs.
Mitchell's secretary.
It was reportedly Mr. Kalm-
bach who took Mrs. Mitchell to
the hospital in Newport Beach
a short time after the incident.
Mrs. Mitchell said that it was
the first time she had named
Mr. Kalmbach, President Nix-
Interim manager of President
Nixon's re-election campaign
until Mitchell took over, est
campaign manager. Magruder
then was Mitchell's principal
deputy. After serving as direc-
tor of Mr. Nixon's Inaugural
Committee, Magruder war;
IIRMad
to a ettb,ofilt11101 peat in.
the Commerce Department by:
the President.
Colson, who recently left the
White House to enter privale.
law practice, was special coun-
sel to the President, reporting
directly to Mr. Nixon arid to
Haldeman. Colson r9com-.
mended that another of the
men subsequently convicted In
the Watergate conspiracy,
Hunt, he hired as a Whit
House consultant Hunt
worked under. Colson foe et
least part of his White Ilotiset
tenure.
Grakl:
et) Uily
terriay that he "sees no need
to go forward" with a private,
conference with convicted
Watergate defendant James
W. McCord Jr. sinee McCorsl.
will be called by the grand
? jury and is giving information
to Senate select committee in-
vestigating the Watergate af-
fair.
Hunt, whose final, sentence
has been deferred by Siriea to
see if Hunt cooperates by giv-
' ing information, faces a maxi-
mum possible sentence of 15
years in jail and a $40,000 fine.
?'G. Gordon Liddy, the only tine
of I he seven Watergate de-
fendants to receive a final sen-
tence. must serve a minimum
of six years and eight months
in jail and it a fine frt $40,-
'000
Hunt, who was taken to
court, from D.C. jail in hand-
cuffs. was apparently returned:
'there last night In 'the riwtrt ers
the shares With the live oilier
!Watergate rompirators w h
I are in jail. A jail official said
he had "no lest ructions- to
find new quarters for tient.
on's lawyer and a Republican
fund raiser, and that "he was
very much involved." She said,
too, that F.B.I. agents were
present at the time but would
not identify them.
"McCerd probably bugged
our apartment," she said. "In
fact, tan sure of that. We were
'bugged in Rye for sure, and
these men, not the E.R.L. came
with ? their little gadgets and
found them. That was some
time in 1968."
Mr. King, who is now a spe-
cial assistant to Secretary or
Agriculture Earl L. Butz, said
he stood by his earlier com-
ment about Mrs. IVIiteheirs
allegations. "I have denied
them, generally," he snid. Ef-
forts to reach Mr. Mitchell and
1
Mr. Kalmbach were unsticerss-
Iful.
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NEW YORK TIMES
4 April 1973
Liddy's Jail Term
Raised for Defiance
Of Watergate Jury
By WALTER RUGARER .
SprciAttollreNmYmkTimel
WASHINGTON. April 3--G.
Gordon Liddy. a key Participant
in the Watergate. conspiracy,
was found in contempt of court
today and sentenced to up to
IR months for refusing to an-
swer a grand jury's questions
about the case.
Liddy, who waS convicted in
january of spying on the Demo-
Oats last year, balked at an
order to testify that was issued
Friday by Chief John J. Sirica
? Of the Federal District Court
here. '
Among more than 30 ques-
tions ljiddy declined to answer
were several dealing with
whether "any other persons"
had prior knowledge of the raid
on the Watergate offices of the
Democratic National Committee
last June. ?
Liddy, former counsel to the
Finance Committee to Re-elect
the President, was described by
the Government during his trial
as the "boss" and as the "mas-
termind" of the Watergate ope-
ration. Today's contempt pen-
alty was added to the term of
6 Years, 8 months to 20 years
he had already received.
Liddy has been described as
the source of many of the state-
ments delivered secretly to a
Senate committee last week by
James W. McCord Jr. NicCord,
who was also convicted at thej
trial in January, is said to have;
cited earlier confidences hyl
Liddy in mentioning to the Sen-i
afors the names of a number
of ranking advisers to President
Nixon.
There were the: following
;other developments, in the
'Watergate affair today:
4iThe seven-member Senate
panel, moving to stop further
leaks of testimony, canceled a
closed session with McCord and
announced that until he ap-
peared publicly, only its staff
would hear his allegations.
4lSenator Lowell P. Welcker
Jr., a Connecticut Republican
who is a member of the corm
mittee, said IL R. Haldeman,
the White House chief of staff,
should accept responsibility for
the scandal and offer his resig-
nation.
cliticCord, who testified pri-
vately in civil litigation related
to the Watergate affair, was
scheduled to appear Thursday
Kefore the grand jury that
sought to miestien biddy.
Liddy made several appear-
ances before the 23-member
grand jury last week and was
granted immunity from further
prosecution by Judge Sirica af-
ter invoking his Fifth 4kmend-
ment right- to avoid self-in-
erinnnation.
Under Federal law, the im-i
munity grant strips a. witness
of his constitutional protection
and compels him to answer
questions. But Liddy cited his
pending appeal of last Janu-
ary's conviction and remained
mute.
Judge Sirica sent biddy to
the District dr Columbia jail
until he was willing to testify,
providing that the sentence
would end with the term of the
grand jury or in 18 months;
whichever came first.
The usual term for a. grand
jury here is 18 months, and the
panel investigating the Water-
gate ease is scheduled to sit
for nine more months. Its life
can he extended.
Thos, continned silence by
Liddy wilt mean at. least nine
extra months in prison, and an
extension of the current grand
jury or defiance of a new panel
could mean a greater penalty.
Judge Sirica stayed execution
of Liddy's earlier Sentence "to
give meaning and coercive Im-
pact to the court's contempt
powers in the interest of pro-
tecting the court's integrity.
The longer sentence will re-
sume after the end of Liddy's
contempt term, Judge Sirica
ordered.
The judge's requirement that.
.Liddy's contempt sentence be
served in the district jail rather
than in the more amenable
Federal Coneetional Institution
at Danbury, Conn., was viewed
as applying extra pressure.
Liddy NIS lost weight and has
engaged in at least one fist
fight during Ids stay in the
overcrowded city institution.
Earlier, .he won Judge Sirica's
recommendation that he go to
Danhitry,
The grand jury miestions
Liddy refused to answer were
react at today's contempt pro-
ceedings. They included several
dealing with "logs" kept by
eavesdroppers on conversations
heard on the Democratic party
telenhnne:;.
He refused to say whether he
was familiar with the logs OT
whether he had received any of
them from Alfred C. .Baldwin
3d, a Government witness who
compiled them and on one occa-
sion took them to the offices
of the President's political or-
ganization.
McCord is understood to
have informed the Senate's
Watergate committee that he
had delivered the wiretapping
information to Liddy and that
he had seen copies of it on
Liddy's secretary's desk.
Liddy was also asked during
the grand jury proceedings
whether anyone not already
convieted had "participated in
any way" in the bugging,
Whether anyone had sought his
"advice or help" on it, and
whether he knew its purposes.
The Senate committee's de-
cision not to hear secret testi-
mony catne a day after the
White House press secretary
charged that the panel had been
plagued by "irresponsible leaks
of tidal wave proportions."
The panel, under Senator
Sam J. Ervin Jr., Democrat of
North Carolina, met for less
than half an hour at the Capi-
pproved
For Release 2001/08/07
fol. No specific rnensures to
end the leaks were disclosed,
but Mr. Ervin said he had "re-
minded the committee" of the
importance of confidentiality.'
i He also told reporters after
Ithe session that he thought the
'leaks had come from MeCord
and his lawyers.
One of McCord's attorneys,
'Bernard Fensterwald of Wash-
ington, denied this and said he
and his client had been "equally
concerned" about the dis-
closures. Some of the dis-
closures were accurate, and
some were "completely inac-
curate," he added .
In canceling tomorrow's se-
cret session, Senator Ervin said
the panel "does not anticipate"
more closed meetings with Mc-
Cord "or any other individual
from whom the committee may
seek information."
"It is commonly expected in
'investigations of this kind that
all individuals will cooperate
fully with the investigative
staff in preparation for public
hearings," the Senator said. The
staff, he added, is "relatively
NEW YORK TIMES
4 April 1973
small" and presumably legs
leak-prone.
Mr. Ervin was asked how
soon the committee would be-
gin public hearings with Mc-
Cord and others. His answer
was, "soon after about 10
days."
Senator Weicker said fit a
breakfast meeting with report-
ers that he had no evidOCe
that Mr. Haldeman had partici-
pated in or directly ()Merely
;any specific illegal acts. .
13itt he asserted that tjhe
White House official had ben
aware of "a disruption crew"
,at the Committee for the. Re-
election of the President during
last year's campaign.
"I think clearly he has to ac-.
cept responsibility as chief of
Staff," Mn. Weicker said. Mr.
Haldeman oversaw "the person-
nel and the policies" of the
committee, the Senator de-
clared, and it would be "quite
proper" for him to offer to re-
sign.
The White House declined
comment on Mr. Weicker's sug-
gestion.
rial by
Leak and
Hearsay
By James Reston
WASHINGTON, April 3--The White -
House is complaining bit terly these
days that members of its staff are be-
ing smeared by leaks and gossip in the ,
Watergate case, and there is obviously
something to the complaint.
It would, of course, be easier to
: sympathize if the While House had ?
been as concerned with the civil rights
of the people who were bugged and
burglarized at the Watergate as it is
, about the civil rights of its own peo-
ple, but even so, their people are en-
titled tb fair treatment: regardless of
whether they are fair to their suspi-
cious accusers. '
The leaks have been coming either
from unidentified members of the Sen- '
ate Watergate investigating committee,
or their aides, or from lawyers appear-
ing before the committee, who are
passing on unsubstantiated testimony
from James W. McCord Jr., one of the
conspirators, who claims his informa-
tion came from G. Gordon Liddy and .
E. Howard Hunt, two other men con-
victed in the Watergate conspiracy.
This is hearsay. "evidence" at least
three times removed. And yet, by con-
stant repetition, it harms the reputa-
tions of some or President Nixon's
closest associates because it amounts ?
to the charge that they were in on the
Watergate conspiracy and thus broke
_their oath of office.
Twenty years ago around here, this
trial by leak and gossip used to be :
called "McCarthyism" and the word .
has now gone into most standard die-
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NEW YORK TIMES
29 March 1973
tionarics as meaning, "1. The practice
of making public and sensational ac-
cusations of disloyalty or corruption,
useally with little or no proof or with
doubtful evidence. , .."
The Watergate and the McCarthy
episodes were quite different ? even
McCarthy at his worst, never bugged
Democratic headquarters but the
headline-hunting still continues in the
Senate, and lately the Watergate has
been producing its own "public and
sensational accusations ...usually with
little or no proof...."
Senator Sam Ervin of North Caro-
lina, the chairman of the Senate inves-
tigating committee, is undoubtedly
within his rights to reject mr. Nixon's,
definition of "executive privilege" as'
"executive poppycock" and to insist
that members of the White House
testify, not on their relations with the
President, but on their relations, if,
any, with the Watergate conspirators:
?
But if the integrity of the Senate is
involved in trying to get the Pres-
ident's aides to talk, it is also involved
in trying to get the members of his
committee to keep quiet about the
gossip they hear in secret testimony
until the whole committee has deter-
mined that it has enough corroborated
evidence to investigate the charges in
public. Senator Ervin agrees with the
doetrine. of Senatorial discretion and
restraint, though it is seldom practiced.'
in Greene v. McElroy, which came'
out of the McCarthy era, Chief Justice
Earl Warren, speaking for a majority.
. of the Supreme Court, insisted that,
when action by the Government seri-
ously injures an individual, "the evi-,
dr.nce used to prove the Government's
case must be disclosed to the individual so that he has an opportunity to
show that it is untrue.
"While this is important in the case
of docuthentary evidence," the Chief
Justice continued, "it is even more im-
portant where the evidence consists
of the testimony of individuals whose
memory might be faulty, or who, in
fact, might be perjurers or persons
motivated by malice, vindictiveness,
intolerence, prejudice, jealousy. . . ."
Watergate is not, of course, pre-
cisely the same case, for the Ervin
committee is trying to get the White,
House staffers to the Bill to hear the
evidence and comment on it; but the
principle is the same: that the accused
should not be damaged by unsubstanti-
ated evidence, and this is happening
now before the facts are in.
, This raises hard questions, too, for
the American press, which was criti-
cized for years after the McCarthy
period for turning over its front pages
to his unsubstantiated charges. Once
Senators talk about McCord's testi-
mony, and it is broadcast all over the
country, about all the reporters can
do is emphasize that the charges are
"hearsay," and this has been done.
Nevertheless, as the Watergate case
is just beginning on Capitol Hill, there
is a problem of fairness and due proc-
ess, which requires more respect from
the White House and the Senate com-
mittee than it has been getting.
A crime has been committed and
Key Watergate Figure
James Walter McCord Jr.
..-.?
Sp.n1A1 to The New York Tloi,1
? WASHINGTON, March 28
?Ever since the police ar-I
rested five men inside the
headquarters of the Demo-
cratic National Committee:
headquarters last June, in-
Vestigators and the curious
have been asking questions:
about them ? particularly
about the chief of the break-
In squad, James
Walter McCord
Jr. Who was
McCord working
for? What was
his role at the
. Committee for the Te-elec-
tion of the President? How
much did he know about
who ordered the Watergate
operation? Where did he
come from?
Only a few of the ques-'
Hotta about the Watergate
affair and about the man
have been answered. Pre-,
sumably some of them were
asked again today when Mc-
Cord testified in private be-
fore a select Senate commit-
tee. ,
McCord was an emploYe
of the Central Intelligence ,
Agency for more than 20
years. Some say he was just
a technician, a subordinate
, whose days were consumed
assigning guards, guarding
safes and generally securing
the C.I.A. headquarters
den in the woods atiang
ley, Va.
Others say he was the chief
of all security for the agen-
cy. "He was the No. 1 man,"
L. Fletcher Prouty, a retired
Mr Force colonel, asserts,
"I was introduced to Mc-
Cord by Allen Dulles [the
former C.I.A. director] who
said. 'Here is my top man,'"
recalls Mr. Prouty, who has
just written a book, "The Se-
cret Team," about his years
in intelligence work.
The introduction came at
a meeting concerning an in-
vestigation of the shooting,
down of a United States Air
Force plane over the Soviet,
Union in 1959.
McCord was such a good
interrogator, Mr. Prouty says,
that, from tho questions he
asked the crew when it re-
turned, he was able to find a
picture and identify the So-
viet intelligence agent who
had questioned the airmen.
Man
In the
News
Watery AMA shrouds Meg
Cord's private life. He was
born somewhere in Texas?
those who know will not say
definitely where or when.
When he was arrested on
:tune 16, 1972, McCord told
the police he was born Oct.
9, 1918. He did not give the
place. Later, bail records in-
dicated he was born July 26,
1924. These data would make
the baldish McCord, who
has kept his sturdy physique,
either 48 or 54 years old.
Reperts have (loafed
around Washington that he
and his wife, Sarah, are both
graduates of Baylor Univer-
sity, but officials there say
he never attended the school.
The first concrete bit of
,James McCord's biography
begins with the Federal Bu-
reau of Investigation, where
he began as a clerk in 1942.
He was still a clerk when, in
1946, he left, for what rea-
son has not been determined.
In 1948 he returned to the
bureau as a special agent.
Aid for the Handicapped
McCord joined the C.T.A. in
1951 and is believed to have
played a role in the abortive
Bay of Pigs invasion of Cuba
in 1961. Little else is known
of his work in either agency.
More is known about Mc-
Cord's life after his retire-
ment in 1970.
He went to his pastor, the
Rev. Walter C. Smith of the
Rockville United Methodist
Church in suburban Mary-
land, and sald he wanted to
spend half a day each week
working for the church. Mr.
seven men have been convicted of It.
The larger question of who instigated,
and financed the !crime has not been
established, and this concerns nothing
less than the integrity of the American.
political process.
' After all, both the White House and
the Ervin committee say they want to
get at the facts and restore confidence
in the political process, but so far
we've not been getting witnesses from
the White House to ascertain the facts
and we're not getting substantiated
evidence but. hearsay from the com-
mittee.
Smith, -who said McCord at-
tended church every Sunday
with his family before he was
jailed, set up a program for
older members of the congre-
gation to meet once a month
for a "social fellowship."
McCord, who has a re-
tarded daughter, Nancy, also
spent many hours working to
help handicapped children.
He was the chairman of a,
group called Concerned Citi-
zens for Exceptional Chil-
dren, and he volunte&ed to
help get A new wing for his
daughter's school, the Ken-
nedy Institute, in Washington.
"They are just a lovely
family, and wonderful neigh-
bors," according to one house-
wife living on the cul-de-sac
in Rockville where the Mc- ?
Cords reside in their $38,000
brick home.
Taught at College
The neighbors say the Mc-
Cord's soli, Michael, is a
junior at the Air Force Aced-
.emy and that their other
daughter, Carol Anne, attends
the University of Maryland.
? McCord taught at nearby
Montgomery College for two%
semesters in 1971. The course. ,
"Industrial and Retail Secu-
rity," was described in, the
school catalogue as "the his-
torical, philosophical and
legal basis of government and
industrial security programs
In a democratic society."
McCord now has a new
secret. During the 16 days
when he was on trial he
'spent hours writing in a
spiral notebook in the court-
room. When asked what he
was writing, McCord, a gre-
garious man, even during the I
trial, would smile but would
not answer the question.
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?
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BALTIMORE DEWS AMERICO
25 MAR 1973
triara'L r Playor
,.:
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. , Ity MILTON FRUDENHEIM ifb.fr--1) ti
, LT
? Run Oil
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per cent Middle East "They see the dollar slid- into marks in February.
money. d 20 per cent banks frig, so they shop around and
:barest". hanker in Beirut ad- an ans Arab money will continue to
a high-roller customerget the best deal available on regard the dollar with great
' from Abu-Dhahi or Qatar: representinc everybody else."
Europeans are eattng itchy a short-term loan of dollars. skepticism even after the lat-
"Get out of dollars. Buy gold,'Euro-dollars cost about S to 10 est switch to floating values, a
deutschemarks, yen." about the 111111thlf1101,11S, most
which? isn't top money trader in London
The Teles clatters with the of which arc 1 American, per cent a year,
French finance tr;Inister Val- much when diVided by 12 for a believes,
message to a Swiss hanker in ery Giscard DI staing says 30-day loan.
. Zurich. He pulls SS million you can'tbiatew enntaa r
ny "Once confidence in the dol-
from the Arab's secret num- ' "Changed into marks, these lar has been lost, it is not
bered account and goes to treasures overseas for taking
borrowed dollars added to the easy to kid yourself and get it
work. steps to avoid losina money on
pressure. This is pretty close hack," this E n g Ii s h m a n
. In 20 minutes, the money the falling dollar. Otherwise, to what is meant by specula- warned.
they'll hear about it from th6 tion.a
;has been split up and part of borne office, . Ile. thinks the pressure will
The businessman often is an let up only wit n the American
lit is sent aeain by Telex, to " n.0 r.icrarA harl thiq In en v '
Frankfurt with a buy - order . t . c. . lin
multinationals: ? transplant from Winnetka, eN::Int'elee-enlYthe 1-6! S. csgoldawiT;'(710,
aim the .neer sire of the ordinary enough 41-year-old
'from German marks From the
Zurich bank to its German
"There are no exact fig.. Ill- paid S10,000 a year and is i?eopened or when dollar.s.
The ,German commercial tires al,at , , , .. ,
? ?lable " Pr said "hut expenses to shepherd his coni- ., .;?-
aelin bcc.nnle -COnVCrtthle.
correspondent bank.
the combine.d treasuries of pany's tens of millions. Ile Inca ?-i-, ,
-iecial Drawing Rights .
only the 1 eto.
w, (...st companirls tells himself he is protecting (SDR) if not gold.
ban li adds up the day's orders
and goes to the central bun- the company against next
desbank, wl-,ich is stuck with "There are no known buy-
scattered around the. Nvorld
the dollars ? G billion in the Even so, he is helping to ers of dollars in sight for any
must amount , to something tvPrVc tiollar clurnn ?
February Hoed, then 2.7 IA $250 billion.
. like drive the American money predetermined rate," he said.
Politically-set rates will be
lion in one day, March 1.. "By comparison. French re- dow.n.
subject to new losses of confi-
Runa against the dollar serve.s at this ninmnt are Then there are those Arab
r
forced two d''.'ealltations and something on the order of 110 oil moguls. Ac,cording to one denc.e, he believes.
However, Citibank's Pettit
months. Treasury Sec. George ate? amounts arc available."
you see what Illas". forecast Middle East oil cram- ?thinks that after nine money
three c.risea In the last 15 billion. So
tries are heading for 130-bil-
Schultz flew to Europe for two Giscard said, lion-a-year-income. crisesaw ay i rsoi nn cl e f i xle9d 67, the
r a te.ss should
emergency me.raings recently
A e
P- "Needless to say, expert in Euro "Those crises were all
-with free world finance minis- y, a large . halo.
) with one of the bieeeat Amen- one-way, with. the pressure to-
tcrs. . I part of these funds could not
can hanks says the multna.
The ministers solemnly possibly be absorbed in their ward the downside. It ttaS
tionals do S2f1.; billion gross in- easy to het on the outcome. - !
blamed "speculative move- internal economies," says
ternational business in and "Now, with floa:Ina ra'es,
mcnts of funds" ? operators Horace Bailey, head of petro-
making a buck by getting rid !cum division of Chemical relatively smail amounts will
with Europe every year.
Overseas executives of big move the markets and prea-.
of dollars. . business and even small ones Bank.
"Speculators. hell!" corn" turn to the "Today's Money"' As a result, it is quite pos. sure "-ill come from the other
side,?too. It is gaiag le be very
Icolumn every morning. They sible that the treasuries of a
to get your fingers
mented a Frankfurt banker
with a Henry Kissinger ac- .play a game called "leads and few Middle East governments easy
'lags ? leading with early pay. could have a surplus by the burned." .
cent. "Those guys are just . '
of as much as New risks may discourage
being prudent." intents of bulls in atrong cu any money operations by small
r- end of the 19705
' Frederick Pettit, vice presi. 1"ney, German marks. Swiss S175 billion, far exceeding
operators like ecuired Amen-
dent in charce of First Nation- lor Beleian francs, and lagging af cucnums u I everat ion obfe rfoorree i genx.pheerl di-
diyiderds. Some of them bar-
says cans livine in Europe on La S.
at City bank's Paris branch, ;ott setihn their debts in d
says "just about everybody" !Weaker money, dollars, Ital.
enced, Sat:di Bailey estimates. Arabia. which will ac- rowed dellars on their stocks
is in the money market now,
;ian lira, British pounds. and henes to hey rnaeks last
including corporate treasur. , v.1-IC th ep. aa we laerang on count for neaaly half of the
!, private individuals, cell- dollar mountain, wants to in- month. After the devalolizion,
ers a fiaterioe dallar market, say
St "downstream" in the they C" Id add to their in
bankers, smallm
compa- i
? leen, 1-rh. 1 to Froi. 11, di
United Stlics and other con- 'ed capital to make up for lost
rues . oil.rich sheikhdoms, dis- nai co
!ar is would have
count-store chains, commodi- r:ro: 10 per cent with the suming dollar buyine power.
s But this
pTd
just mi countrie.
eht be more foreign
ty purchasers and commer. devaluation, a nice gain for
money than even the trillion.
cial banks.'
,
the, company. aim U. S. economy would
He divides the remainder ?
Multinational companies, But the. monev manipulation
goes further. "Sig companies care to swa?
llow.
like IBM. 1TT Volkswagen Libya, a hotly nationalistic
' - have lines of credit at num-
per rent of the latest dollar hers of banks, banker explained. " a Brussel Oil producer with billions in
the banks, was widely credit-
and Nestle, accounted for GO s
flood, a Frankfurt source esti-
ed with helping swell the flood
mate5.
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NEW YORK TIMES
4 April. 1973
Smuggling of Drugs
In False Legs Laid
To Two Colombians
Two Colombians hobbled
into Federal Court in Brook-
lyn on crutches yesterday,
each with a leg missing and
each charged with smuggling
cocaine and marijuana stored
in the hollowed-out parts of
their confiscated artificial
limbs.
A third suspect, a Colom-
bian ,woman, was also accused
of taking part in the smuggling
of $1-million worth of cocaine
from Bogota to Kennedy Inter-
national Airport.
Acting on confidential infor-
mation, customs agents took
the three into custody Monday
night. They also arrested a
fourth member of the group on
charges of carrying a false
passport.
The agents took flee of the
suspects, William Ochoa, 25
years old. to St. Vincent's Hos-
pital in Manhattan, where
physicians removed his plastic
left leg. Inside, they said, they
found one kilo (2.2 pounds) of
cocaine wrapped in plastic
bags. The suspect told them he
had lost his leg during a guer-
rilla uprising in Colombia two
years ago.
Agents said they found six
ounces of marijuana in the ar-
tificial right limb worn by
Jaime Zapata -Reyes, ?another
suspect,
The woman, identified as
Mrs, Lenore Jaramillo, 34, was
allegedly found to be wearing
three girdles, each concealing
quantities of plastic-wrapped
cocaine totaling one kilo.
Agents reported that each sus-
pect had more than $400 and
return tickets to Bogota.
United States Magistrate Vin-
cent A. Catoggio held each in
$100,000 bail. Expressing con-
cern over the missing artificial
limbs, which had been described
as damaged, he directed that
customs agents return them in
goo condition.
The third man was identified
as Oloniel Pineda, 36, who was
arrested on charges of carrying
a [also passport. his arraign-
ment wag deferred.
NEW YORK TIMES
31 March 1973
Dig Aids Heroin Seizure
SAN FRANCISCO, March 30
(IIM) ? A German shepherd
named Zorro sniffed out 44
pounds of heroin yesterday in
the largest heroin seizure in
West Coast history. Agents ar-
rested Tang Knang Hook, 38
years old, who he claimed two
suitcases at San Francisco In-
(creational Airport. The heroin
was estimated to he worth V;4-
'nillien in street value.
LONDON TIMES
28 March 1973
American expert raises spectre of
West's oil supplies being cut off
From David Spanier
Amsterdam. March 27
If there is one issue which
excited the delegates to the
Europe?America conference it is
that of oil. More than trade
policy or monetary reform, it has
an elemental simplicity about it,
which is compelling. Certainly
oil is likely to figure at the top
of the translatlzmtic agenda in
the coming decade.
All new subjects need a
prophet of doom, especially if
they are to make headway among
liberal intellectuals, and in Or
Walter J. Levy, the Europe-
America conference found its
Cassandra today. Dr Levy, who
is a noted American oil consul-
tant, has a quick answer to those
who feel he may overstate his
forebodings. " If there are any
alternatives, I have not heard of
Ahein.". ?
Dr 'Levy Starts from the basic
and unrhymed assumption that
front now on until the early
1980s Iteited States energy needs
will only be able to be met by
very substantial increases in oil
imports. most of which will come
from the Middle East. Oil im-
ports by Europe ami Japan will
also rise x,ery heavily.
The total value of United
States net impm ts of energy
materials, rooctly inav easily
reach $18,00nte to $24.000m
(f.7,200m to L9,600m1 a year by
SIIINGTnN STAR
22 March 1973
RAY CROMLEY
1980. The figure for European
Imports is pot at $23,000m to
$31,000m, and Japan's at
$12,000m to $16,000m. ?
On the other side, the revenues
likely to accrue to Middle East
producing countries are esti-
mated at about $40,000m a year
by 1980.
Dr Levy spent little time on
figures today, beyond noting
that the Middle East oil pro-
ducers would be in a very strong
position indeed, as well as being
very rich. Meanwhile, the posi-
tion of the international oil in
dustry has drastically declined
From the beginning of 1970 they
have not been able to bargain
as reasonably equal partners
They have been continually over
ridden by the producing cow;
tries, as witness the latest re
opening of the currency agree
mon on oil pricing and the sharp
change in Iranian policy.
The threat, according to Dr
Levy, is that if the oil companies
do not accept what the Organisa.
Lion of Petroleum Exporting
Countries (Opec) says, the West
cannot depend on its oil sup-
plies. The flow may well be
stopped.
What, then is to he done
" You can't have a situation
where the most important raw
material that moves in inter-
national trade, where most im
portant financial consermences
arise., where negotiations on a
current basis change overnight
Applying
One of the most incompre-
hensible campaigns Sen. J. W.
Fulbright and some of his col-
leagues have waged of late is
their attempt to strangle the
U.S. techhical-aid program to
foreign police departments.
Their sledgehammer at-
tempts to kill the program,
entirely (successful for a few
days a while back) has
spurred them to new oblique
efforts. Yet consider these
points:
? If we are to cut back on
, terrorism ? tis when Olympic
athletes or American and.oth-
er diplomats or others are
arrogantly killed in cold
blood, it is essential this coun-
try assist in training more ef-
ficient police worldwide: Oth-
erwise, terrorists c an cow
moderate officials and ham-
per (or even prevent) peace-
ful solutions In Alit 'Middle
East, Southeast Asia and oth-
er troubled areas. Then add in
what terrorists do to the abili-
ty af men and nations ttioper-
ate In dignity.
?
arrangements concluded yester-
day, without the active firm,
continued, organized support of
the Atlantic community and
Japan. . . .What is needed is a
common policy not only with the
European Community. but also
between the Community. , the
United States and Japan."
A common policy might en-
compass 10 objectives, it was
suggested :
1 Study and review of damand
and supply, including diaersifi.
cation. 2 A research prngramme
for developing new resources, in.
eluding atomic energy. 3 Invest.
merit review and incentive and
guarantee programmes for such
resources. 4 Review of importing
arrangements and criteria for
them. S Contingency plans for
stockpiling, rationing, and shar-
ing supplies in any emergency.
6 Research on conservation and
economy. 7 Review and coordite
ation of development, assistance
to producing countries. 8 Review
of prices, costs, and foreign ex?
change costs of nil imports. 9
Review of producing countries'
revenues and their world impact.
10 Review of producing (flew
tries' trade and interdependence
with importers.
Dr Levy concluded by propos-
ing that a new hiah level energy
council should be set up by the
West to pursue these tasks. " not
as a prelude to conhamtation
with Opec., btu as the only way
to avoid such a confrontation."
the Sledgehammer
O If we are to reduce the
flood of heroin pouring into
this country with such alarm-
ing results, we must intensify
(not eliminate) technical as-
sistance to foreign constabu-
laries, and patrolmen con-
cerned with this problem.
? If we are to Put a damper
on the police brutality cos-
' tomary in so many lands, we
must have advisers to pass on
to their associates around the
world the knowledge that ter-
rorism and cold brutality are
counterproductive and that
police forces are moss effec-
tive when the policeman on
the beat becomes involved in
helping his community.
? And finally, if we are to
prevent future Vietnams, lo-
cal police forces must be
trained not only on how to
prevent local terrorism, but in
ways to better relations be-
tween the police, the govern-
ment and the community.
This reporter has seen first
hand in four countries the
20
dramatic effects of such U.S.
advice on the actions of total
police. Perfection has not
been reached but, as one na-
tive liberal put it, anything
the Americans do must end up
in making things better in less
torture and brutality.
The police aid program, of
course, requires improve-
ments. But the baby cannot be
thrown out with the bath wa-
ter. What these senators
should be doing is attacking
aspects of the aid program
they believe are harmful.
They should' be suggesting
improvements.
Do they believe we are
sending the wrong men
abroad? Or are they getting
the wrong training? 'Mese are
the problems the senators
should be attacking. ?
Instead they're determined
on the meat-cleaver approach
using scare words and rumors
passed on by propagandists
for totalitarian groups.
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BALTIMORE SUN
1 April 1973
9
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S
nv 5111ITARD
Berne.
The day when Soviet police commis-
sars trade tips with the FBI on a
crimestoppers' hotline may be here
sooner than you think. And- when it
comes, the "switchboard" will be Inter-
pol, the little-known police liaison
agency that celebrates its 50th birthday
this year.
To date, only Yugoslavia among the
I East bloc countries is part of Interpol's
network of 114 member nations. But
Romania is seeking admission. If its bid ,
is approved?and insiders rate it a
shOo-in this October when the agency
holds its jubilee in Vienna?it may well
sienal a broader detente between police
officials in East and West. At least
Mat s me way Interpol spokesmen view
things.
Until recently the Soviet bloc regarded
Interpol as something of a Western
stooge. Indeed, it. remained largely a
European message center after its
founding in Vienna following World War
I. Though officially "nonpolitical," its
bureau chiefs are even today often for-
mer police Chiefs of member countries.
The present general secretary in Paris,
for example, is Jean Nepote, previously
chief of France's national police.
Nor could Communist nations forget
Interpol's Nazi past. In 1933 Hitler pro-
posed a Gestapo chief, Gen. Reinhard
Ileydrich, to head the agency. Despite
0
protests from Europe's demoerntic coun-
tries, the later "protector" of Poland
was elected to the post. Thus Interpol's
usefulness to the Allies Ceased. Even
though General Heydrich was assassi-
nated in Prague in 1942, the Allies
shunned the organization until 1946 when
they revamped it completely.
In recent years, though, Interpol has
taken on a distinctly Third World color-
ing. The Europeans and Americans no
longer command a majority. Regardless
of the Wines involved, social justice
ranks high on the agency's agenda.
South Africa, for example, never has
been a member; nor is it likely to
become one. "It's doubtful that the
Third World would ever accept it,"
explains Jean Benoit, the Swiss Interpol
bureau chief.
This turn of events understandably
pleases the Kremlin.. It also gives Ro-
mania's imaginative foreign policy plan-
ners needed elbow room to justify their
"opening wedge" in teirms of socialist
ideology. How fully the socialist and
capitalist police forces cooperate is, of
course, dependent ? on factors beyond
Interpol's control.
Politics already hinders Interpol's
effectiveness in the Middle East and
anywhere else that war threatens. Inter-
national terrorism remains a touchy
problem for the agency as long as some
Arab states condone it. But at inter pol
world congresses, where Iraqis and Is-
raelis sit alphabetically cheek to jowl,
CHRISTIAN SCIENCE MONITOR
27 March 1973
er with
Iriterpol.
as Mr. Benoit notes, "there's been no
war yet." In fact, Interpol membership
allows neighbors like the Israelis and
Arab states a go-between if they're not
on speaking terms. "Israel can file a
report with us," Mr. Benoit says, "and
then we transmit it to Cairo, Beirut and
so forth." This at least permits top-level
' cooperation in nonpolitical matters like
drug-running, however round-the-horn it
may be. Interpol obviously plays a key
role in furnishing vital background data
on skyjacking commandos to govern-
ments facing ransom ultimatums. After
an Arab-Israeli shootout at Zurich's Kb-
ten Airport a few years ago, Arab
agents helped identify the Palestinian
terrorists. "Whether they answered
everything as fully as possible or not, I
couldn't say," Mr. Benoit admits. But
he insists that Interpol has no Middle
East problem.
The admission of Romania and even-
tually;olber East bloc countries to Inter-
pol poses a new puzzle to the agency:
how to. cope with refugees and escap-
ees? What happens when a Romanian
flees to, say, Austria? Is he a criminal,
as Interpol agents in Bucharest will
likely claim? Or is he a political refu-
gee, as the fugitive himself will proba-
bly insist? And what if he is both?
Interpol would clearly prefer to dodge
such sticky cases. Yet East being East
and West being 'West, the prospect of its
soon becoming mired in the complex
political-asylum controversy is a near
certainty.
Center to treat uese youth
on dru s opens in am itgok
By Gerry Coffey
Special to
The Christian Science Monitor
Bangkok, Thailand
A drug-treatment center for American
youth in Thailand ? the first of Its kind
? outside the U.S. ? opened in Bangkok
recently.
Under the auspices of the Special Actions
Office for Drug Abuse Prevention (SAODAP)
in the Executive Office bf the President, the
program is set up to treat youths with drug-
related problems and adolescents Identified
as susceptible to drug use.
Although official figures are kept closely
under wraps, relaibie sources place the
number of deaths in Bangkok due to drug
abuse at an average of one American youth
per month.
SAODAP officials visited Bangkok last
August to analyze the problem, establish a
"health care response model," and discuss
with members of the American community
here the steps for establishing the treatment
center with U.S. Government financing.
An experienced SAODAP initiating team
led by Miss Joan Donley is currently in
Bangkok to help select and train competent
local members of the community to operate
the center. Its board of directors Is made up
of locally stationed military and civilian
medical officers.
As the program develops, it might evolve
into a regional center to take care of similar
situations in neighboring countries, Miss
Donley indicated.
"The program is not necessarily limited to
Americans but primarily focusing on Amer-
icans," she told parents and teachers from
the International School of Bangkok at an
introductory meeting.
The center will offer out-patient treatment
for individuals, groups, or families, plus
resident treatment for adolescents who need
to be temporarily removed from home or
school, she said. It will be operated on a 24-
hour basis.
A close working relationship will be main-
tained with the schools and with the presently
existing "rap house" and "hot line" to meet
any crisis which might develop.
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ircrineulm., Apra 4, 1073 THE WASHINGTON POST
Marquis Childs
The U.S. 'Trade Deficit
Like a mirage seen In shimmering
desert heat is the vast wealth of the
oil sheikdoms in the Persian Gulf.
When in the next decade the United
States must import up to 30 per cent
of all the oil we use, their take will
Increase from roughly $10 billion a
year to $30 billion or more.
That tidy sum will be at the com-
mand of sheiks whose desert princi-
palities are sparsely populated and
whose peoples make few demands.
The leverage in world finance and
diplomacy this will give these auto-
crats is reason for dark foreboding in
Western capitals, foremost among
them 1Vashingt on. Besides the sheik-
doms there are the leading oll pro-
ducers such as Iran making up a tqtal
overall of 75 to 90 billions of dollars,
yen, sterling and francs by 1980.
How will they spend these vast
sums? In a speech in Paris recently,
Thornton F. Bradshaw, president of
Atlantic Richfield, put this question
to a leading British politician. Brad-
shaw said all he could think of was
that they would come into the stock
market. rind buy all of General Motors,
all of MM. all of General Electric.
After thinking for ? a moment his
British friend replied:
"Splendid! You let them buy Gen-
eral Motors. You let them buy IBM.
You let them buy General Electric.
And then you nationalize."
This was, of course, meant as a
laugh. In a serious vein Bradshaw
made what for an nib man was an here,
tical proposal. He suggested sharply
increased taxes on cars according to
horsepower to discourage large cars.
THE ECONOMIST MARCH 24, 1973
in Energy
He would encourage the use of gaso-
line taxes for building mass transit
syStems in cities.
A gasoline shortage is jusf around
the corner, it is likely to be acute
with the beginning of the tourist sea-
son. The motorist scurrying from
pump to pump to fill up his tank will
be a common sight. Prices will rise
sharply and there may even be an
attempt at. rationing which promises
to be both too late and too little.
Short of a direct attack on the great
god horsepower and the status symbol
of the Cadillac and the Lincoln Con-
tinental, the pinch will grow worsel
from year to year. Far from stimulat-
ing production of the motor car, as
'was the goal when the excise tax was
removed, the objective should be just
the opposite.
Detroit, is saying proudly that this
will be an 11 million car year. City
streets 1hre already so clogged that
traffic moves slower than a walking
pace. The one man, one car commuter
is a familiar phenomenon coming in
from the suburbs to the center city.
The Plain, hard fact is that for all
the chirrupy talk about. the boundless
resources of oil, gas and shale within
the continental United States, nothing
can be done to relieve the pinch with-
in domestic confines for at least a
decade. Government controlled prices
for natural gas, the rising cost of
exploration, a complex web of cir-
cumstance makes any quick change all
but impossible.
An illustration of the time lag is
Atlantic Richfield's discovery of the
largest field in North America in
arta n y for dearer oil
Alaska in 1988. Company geologists
first visited the North Slope In 1949.
Conservationists blocked construction
of the Trans-Alaska pipeline in fed-
eral court.
The United States Supreme Court
has declined to overrule the lower
court injunction. This means that only
Congress can act to decide whether
construction of the line on government
.owned land can procce'd. This is hound
to be a lengthy business as .ecologists
take up the challenge in Senate and
House. Oil from the North Slope enuld
at most slightly ease the shortage
ahead.
That conieritig word ecelogy has
helped to snarl, the energy tangle.
Conservationists fight the construction
of refineries that could despoil tho
shore line. Drilling for off-shore oil
resulting in such major spills as thlit
in Santa Barbara brings stout resist-
ance. It is all part of a confused nod
troubled picture which may or may
not be sorted out by President Nixon's
long-awaited energy message.
The recommendations he makes will
;have to be approved by Congress. In
the current state of hostilities between
the two branches of government that
could mean further. delay.
By 1980 the United States trade
deficit in energy?imports of gas and
he over $17 billion n year.
That is a daunting addition to the
already lopsided trade balance. We
should no longer pretend that we Can
use up 35 per cent of all the oil con-
sumed lb the world without. paying
What may he a prohibitive price. -
el 1973?United realure Srn4lcate
The delicate peace between the oil companies and the Middle East oil producers is
cracking. Better prepare for another hike in oil prices
Algeria has shattered the pleasant dreams of that handful
of optimists who had convinced themselves that with the
participation " issue largely settled the international oil
industry could look forward to a period of relative calm.
Algeria proposed at the meeting of the Organisation of
Petroleum Exporting Countries (OPEC) in Vienna last
Friday and Saturday that all current price agreements
between the oil companies and the OPEC countries be
scrapped and negotiations begun from square one. This
came as a bombshell whose reverberations arc going to
be felt throughout the oil world for a long time to come.
The proposal was vetoed by the Saudi Arabians but not
before a good many of the other oil producers had
strongly supported it. It will take only one or two clashes
on sensitive issues and moderate countries like Saudi
Arabia will probably no longer be able to sit on pressures
from the radical oil countries, nor may they want to.
The upshot will be another increase. in the price of crude
oil.
Participation agreements have still to be negotiated in
Libya and Algeria and the I3asrah .oil field in Iraq, but
the really sensitive spot is Iran, which chose to make its
own, quite different sort of deal with the companies.
By settling for a new and unique management structure
for Iran's oil facilities, the Shah won a point from the
22
companies that is going to be politically useful to him at
home. The new structure will have little visible effect
on day-to-day operations, but it will put them under
a nominally Iranian umbrella. Since, in financial terms,
Iran will get exactly what the participation countries will
receive, the Shah can claim, with some justice, that he
has been given more by the oil companies than they
gave under the participation agreements to Saudi Arabia's
Sheikh Ahmed Zaki Yamani and his clients.
The Yamani group, consisting of Saudi
Kuwait, Qatar and Abu Dhabi, could not care less
about how much political mileage the Shah makes at
home out of his agreement. But if, as a result, they arc
asked awkward questions in their own countries, they
are going to come right back at the oil companies demand-
ing that their agreements be reopened so that the Shah
can be put back in his place, which, in their opinion,
is a clear number two in the oil world.
This is by no means the only sensitive spot. The Arabs
are watching like hawks to make sure that the Iranian
agreement, whose details are still being negotiated, will
give Iran exactly what they arc getting and not a cent
more. Saudi Arabia, Kuwait, Qatar and Abu Dhabi
are also concerned about certain ambiguities in the agree-
ment reached recently between Iraq and the Iraq
Petroleum Company following last June's nationalisation
Arabia,
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Approved For Release 2001/08/07 : CIA-RDP77-00432R000100130001-2 .
nf the Kirkuk field. By way of compensation, Iraq is
delivering crude oil to the company over a 15-month
period in T c)73-74, making it impossible to put an exact
value to the oil. Along with some other grey areas of. the
Iraq-IPC agreement, it is difficult to estimate whether
Iraq will be paying more or less compensation than the
other Arab oil countries will under the participation
agreements. If, the oil companies get rather more com-
pensation from Iraq, no one will worry. ? If they receive
less, the other, countries will be on the collective over-:7
stretched neck of the companies in a flash.
Another spot was made tender by President Nixon's
:announcement that he is drafting a proposal that will
encourage the oil-importing countries tb act collectively
in their dealings with the oil-producing Countries. Sheikh
Yamani, who is probably the best friend (he west has in
the present situation, is alarmed at the prospect of
pressure from Atnerica and other countries. If pfessure
is exerted, he has warned' publicly, the west an 'forget
about Saudi Arabia, for one, raising its oil production
in the coming years to suit the west's needs.
Saudi Arabia hardly needs more income than is already
provided by its present production. of about 6m barrels,
a day, so why should it, as has been suggested, raise
production to 2om barrels in the late 1970s to help its
customers if they are going. to act nasty anyhow .? It
would be different, the Saudis feel, if they were threaten-
ing to hold back production, but they point out that they
feel a responsibility to supply the west .with the oil it,
needs until alteenative fields can be developed. ?
In the present sellers' market, it 'is doubtful whether
the consuming nations can get together. anyhow. Sonic
of them, notably France, play their own games in the
Middle East, but. even if they did not the sheer weight
of commercial competition would make effective co-
operation difficult. President Nixon's initiative, instead
of improving matters, is likely to reap the kind , of
publicity that worsens them. ?
In large measure the developments which. have put the
oil-producing countries so firmly in the driver's seat have
arisen out of the, levelling.off of Ainerica's own oil pro-
duction. Even if Alaskan oil is brought to market within
the next few years, American production will not be able
to keep up with expected increases in demand, although
these increases will probably not be as large as formerly
thought: fuel' conservation and economy arc going to
.beconte increasingly, fashionable in America. ?
, President Nixon's only way to change , the balance
back in the oil Consumer's favour is to initiate a pro- ?
gramme that will once again make America independent.
'of imported energy. This is why his promised energy'
message will probably be the most important event this
year for the energy industries. If it is not, it will be,
.their biggest disappointment.
',There is not much that America can do to reduce it
dependence on Middle East oil before the. tgflos,:bn
,it will, make all the difference whether America's depen-
dence is seen as transitory or something that is likely
to, go on indefinitely. Mr Nixon should aim for a Middle
course in his message, Unlike the space programme, with
which it is sometimes compared, an energy programme
cannot avoid stepping on the toes of powerful, established
Interests,. which is why sonic of the most important
politicians in the .Nixon Administration and Congress
are doing what they can to influence the President's
message. Mr Nixon, a political animal if ever there was
one, might weigh the opposing factions against each
other and decide there would be little political advantage
in going much beyond a fine-sounding speech. But that
would create large problems with the international energy'
industries.
r The other extreme, tt crash programme for alternative'
fuels, is well within America's capability, but it is argued
that it might even exacerbate current problems by creat-
ing a panic and driving oil prices up even faster than
they are likely to. go up anyway.* According to reports
in -Washington, 'Mr ? Nixon's energy. speech has been
written for some time, but his advisers disagree among
themselves as to ?hoW strong its main. provisions should
be. It is easy to gec why they are having so much trouble.
WASHINGTON POST
31 March 1973
Mexican Preside...A Urges Canadians
Help Curb Whihinational Fin s
By Claude Lemelin
Special to The WashIrmton Post
OTTAWA, March 30 ? The
President of Mexico, Luis
Eeheverria, pressed today for
coordination of Canadian and
? Mexican efforts to control
foreign investments and curb
the powers of multinational
:corporations, most of them
'dominated by U.S. Interests.
1 In an address to the Canadi-
. an Senate and House of Com-
?mons, Echeverria pledged Mex-
ican support "to any initiative
that is taken to draw up an ob-
ligatory code of 'conduct that
will regulate the actions of
.multinational companies and
establish.guidelines for the do-
mestic legislation of the na?
Lions concerned."
He warned: "We cannot. se-
:cent the action of multina-
Jonal companies when they
pre not bound by the soy-
Creignity of the nation or when
they are harmful to the real
ticeds and aspirations of coun-
tries."
"We want to take advantage
Approv
of their positive contribin ions,
for their own benefit and that
of our population. We are not
interested in fostering an ap-
parent industrial progress that:
only benefits large consord
Hums that are not hound by,
our national goals."
The Mexican president, who
is on a five-day state visit to
Canada with his foreign minis-
ter and other officials, met,
yesterday with Prime Minister
Pierre Elliot Trudcau, Exter-
nal Affair's Secretary Mitchell
Sharp and Energy Minister
Donald AIN:Donald. They dis-
cussed their countries' legis-
lative approach to curbing for-
eign investment and each gov-
ernment's bilateral relations
with the United Slates, which
is t he major trade partner for
troth Mexico and Canada.
For the mos;: part, discus-
sions focused on ways to de-
velon closer ties between
Mexico and Canada, especiallY,
through Increased trade and
economic cooperation. Each
country has attempted In' re-
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cent years to diversify its in-
ternational outlook to 'escape
from what It considers too
exclusive a relationship with
the United States.
Echeverria's visit to Ottawa
is the first stop on a Month-
long world tour that. will take
him to Europe, the Soviet Un-
ion, to Europe, the Soviet
Union and China.
The Mexican president told
the Canadian Parliament "Only
dangerous fatalism could lead
us to 'believe that the interna-
tional community should be
structured in the future in
accordance with old.systems?
of denomination and that the
only possible way of change
would be to redefine spheres
of influence. Such a belief
would be facing the future
with a 19th century outlook
and condemning ourselves to.
dependence."
Echeverria welcomed Can:
ada's recent diplomatic open-
ings toward Latin America.'
Though Mexico is convinced
that full Canadian member-
ship in the Organization of
American States would he
useful, he said his govern-
ment respects Canada's rex:
sons for joining only as a per-
manent observer.
"We share many or th,e
doubts that rightly concern
Canada with respect to this
organization." the president
said: "We realize that Its de-
cisions only appeared to b61
democratic and that ideologi:
cal intolerance frequently di-
verted this inst it id ion f ronii
its ObjeCtiVeS."
23
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- NEW IORK TIMES
1 Afitil 1973
u.s4Europe
118?11111W1111~1.11/SNO
Old Friends
:Drifting
Ao
Amsmirnyvt?The signs of slip-
page .along the European-American
seam had become uncomfortably visi-
ble a year ago. It was no longer the
old theme, echoed as often as the
? Mischievous shepherd ?boy's "wolf,"
that the alliance was, in "disarray." ?
The growing concern WAS that the,
Atlantic partnership was wearing out,
that even as the United States was
growing less hostile to its Russian
and Chinese antagonists, it was grow-
ing less friendly toward its friends.
Some of the people who had spent
much of their adult lives constructing
the institutions of a postwar world
based on America's new-found
Strength and Europe's traditional
Civilization felt that something should
be done about the erosion.
So last week they convened the
Europe-American Conference here.
The purpose was to discuss the prob-
lems of a changed international land-
scape; not to negotiate; so there was
little effort to attract officials pos-
tossed of the power of decision. But
there was hope of developing the kind
of high-level intellectual momentum
which can influence . policy. That
Meant a reunion of what has come to
be the loose but recognizable Atlantic
"Establishment."
By and large, the establisitmenta-
Hans were there?among the Atneri-
tans, George Ball, Nelson Rockefeller,
John McCloy, John Tuthill, 'Eugene
Rostow; among the Europeans, Joseph
Ltms, Dirk Stikker, Walter Hallstein,
Kurt I3irrenchbach, Eric ? Blumental,
Roy Jenkins.
But it became all too quickly evident
that the Atlantic. concept has aged,
It was not renewing itself and the
dangerous affliction of nostalgia was
Setting in. "Where is the succes-
sion?" complained a devoted European
Atlanticist.
. The new generation of leadership
bad not appeared in Amsterdam to
continue the relay. There was no
single reason. Partly, not enough .new
names had been on the list. Why?
Partly, because the younger people
who have come to prominence and
influence are interested in quite dif-
ferent matters.
"I. don't see why we should bribe
them by offering more windy talk
about pollution, and minorities, and
women, and the Third World," said
the European veteran, "The key issues
for us are still security. economic. ROI',
political cooperation, making the West-
ern world work."
There was some despair, some sober
fear, and It good deal Of frustration
among men and women who had
'