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October 26, 2005
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25X1 gpproved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 3~IRT.fC~:.E APP ~q,R,B,~}proved For R ~iB~F1~1e'iiQ/7~~IA-RDP80B01554R8~93400050017-6 DN' .I'AG 1.9 AUGUST 1978 ~ ~~~~s ~r~~p~~ ~~~~r~s$ ITS' E~e~a~~~~~ The Justice Department yesterday announced that "to safeguard national security and U.S. for- eign intelligence interests" it will not pursue three of the six perjury-related charges against Interna- tional Telepphone and Telegraph executive Edward J. Gerrity Jr. Gerrity is accused .of having lied: to a Senate committee about his company's involvement in Chile. ~ - The first notification that one count of perjury,' one of subornation of perjuryy and one of making a false statement, would not be pursued came dur- ing ahearing before U.S. District Court Judge Au- brey E. Robinson Jr. when prosecutor G. Ailen Carver Jr. said the government had decided not to pursue, rather than drop, the three.counts. Gerrity, ITT senior vice president for public af- fairs. and Robert Berrellez, an official- for ITT in Latin America, were indicted on six- counts each. last March in. separate criminal informations which charged that the two men, and unindicted co-conspirator Harold Hendrix, had-lied to-the Sen- ate Foreign Relations subcommittee an multina- tional corpporations in 1973. ~ ? F The subcommitte was investigating allegations that ITT interfered in the 19Tp presidential elec- tions in Chile and had offered nearly $1 million to opponents of the~now-late Marxist-orfented Salva- dor Allende. - - In separate hearings before Robinson yesterday, attorneys for Gerrity and Berrellez argued that all charges against their clients should be dropped. Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 THE WASHINGTON POST ARTICLE ApPi~~KED 21 August 1978 ON PAGE A-19 ~~?~b~ .~eni~~ .~ee~ing ~~~~~ ~n G`~~ ~~m~s~i~ Sno~ ~n ~' ~ unscea Preaa Internetionai [agent] within CIA ... he makes other '. ,Former director William E. Colby equally farfetched assertions which , denied yesterday he leaked the explo- call for clear rebuttal,"'Colby said. sive 1974 story about the Central In- He said his comments to Hersh ~ telligence Agency's illegal involve- - "had absolutely no connection with ment in domestic surveillance. my professional differences of opinion ?? But Colby, who headed the CIA with James Angleton over. how coun- from 1978 to, 1976, conceded he con- terintelligence should be conducted in -firmed the story to New York Times reporter Seymour Hersh before publi- cation 3~1z years ago. ?. The story led to four government investigations of the CIA, opening some of the agency's secret activities 1io public scrutiny and leaving part of CIA" and denied assertions he used the disclosure of the information to oust the counterintelligence chief and three top deputies. Colby insisted his overhaul of the CIA's counterintelligence operation "strengthened rather than weakened 'its staff demoralized. that effort over the way it was con- The CIA's counterintelligence chief, ducted previously." James Angleton, retired within 48 Epstein said "it was Colby himself hours after The Times story was pub- .who had engineered the leak" of the lished. Colby and Angleton were old ~ "family jewels"=the details of two bureaucratic enemies, and ~ the feud ~ decades of questionable CIA `activi- has continued, with Angleton's ex- ties. treme partisans trying to leave the "I did not leak the so-called `family impression Colby acted contrary to jewels' to Seymour Hersh of The New U.S. interests and might even be a York Times," Colby said in his letter. Russian spy. He said Hersh came to him before ; :~In a letter to the editor is Sunday's . publication of the story "with a much ~ditian of The Washington Star, Colby? exaggerated account of those past-I gesponded to an article in Commen- events." I tary magazine by writer-critic Edward "It was clear to me that: he was go- Jay' Epstein that was reprin"ted in The ing to publish that story; so I tried to ~ Star three weeks ago. bring him down to a mare accurate `-"`While [Epstein] seems to have perspective, and I gave him no mate- , abandoned his earlier hypothesis that rial he did- not already have,"'.Colby .I I''might have been a Soviet `mole' said. Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 25X1 gpproved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 Next 5 Page(s) In Document Exempt Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 WASHIN TON STAR !;,~^'~rr.,~T' AP`'E~PE7~lpproved For Rels~eA~~/~12~/~g CIA-RDP80B01554R003400050017-6 ol~ - ~ _.D -~, ... .... :.. ... 1L.etters to the editor `I did not ~ea.~ tie ~an~.~T ~~vv~~s' While Edward Jay Epstein seems to have abandoned his earlier hy- pothesis that.I might have been a Soviet "mole" within CIA [a "mole" is the word for an agent whose jab is to burrow into and eventually undermine the other side's intelli- gence system-- Ed:) in his Coax mentary article which The Star re- printed on Aug. 6, he mhkes other of The New York Times. Mr: Hersh came to me before his Dec. 22, 1974, Times article with a much exagger- ated account of those past events. It was clear tome that he was going to publish that story, so I tried to bring him down to a more accurate per-?>~ spective, and I gave him no ma-: ,: terial he did not~iready have: -.:; a~~ '"; ,~ ~ Second, my comments to Hersh with my professional differences of opinion with James Angleton over how counterintelligence should be conducted in CIA. Mr. Epstein seems to have missed the. account of .my conversation with Mr. Angleton on Dec.. 20, 1974,. which appears on page 396 of my book, "Honorable ~ ?' ~ "'" ` Men,',' where I clearly said that ducted .previously, from which. I both he and I knew that his move- could find no tangible results. ment from the post as CIA's chief.of '~ Fourth; I certainly did favor the counterintelligence was not con-. k recruitment of additionai agents in nectedwithMrHersh'sarticle,.~~~"~.=':'so-calIed "hard-target" areas, in- Third;: my 'change in the CIA ~_;#-''eluding the Soviet Union,' following counterintelligence , ,structure :?F~ a.program initiated in the mid 1960s 'strengthened rather than weakened??~''`, in CIA. I do-not have' access to the that.effoR over the wag~it. was. con-.':-.; ? details of the Lipavsky case. at this time, buy I note from the public ac- _ counts of it that CIf+ apparently ; tried him out and abandoned him after a few weeks of its usual eau- tious testing.-The Soviets appar- ~ ently utilized these tentative con- tacts as the basis for a concocted attempt to smear the Jewish activ- ist movement. ? Ferhaps `Mr. Epstein's next ' (fifth) theory to explain my change -in CIA's counterintelligence ma- chinery and my 1975 testimony will look at the straightforward ac- counts of both contained in my book: The first was to make coun- ? terintelligence more efficient, hellw ing and not hindering our positive intelligence mission. The second ?'was an appreciation that a new day "- had dawned from the old"days of 'iota! secrecy and unquestioned executive power over intelligence, and a belief that CIAin this new era `must be accountable to the Con- gress and to the American people as well as to the president. I standby both of.these beliefs. Wilfiam E. Colby , Washington, D.C. - {NOTE: For those who came in Iate, the Epsteinpiece alleged that I Mr. Colby, as director of. the CIA in 1975, came close to wrevkin~ the ; agency by leaking to The New York .Times _reports..of the agency's_ domestic. skulduggery, referred to ~ as the "family jewels."~,{ :;. r; Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 STAT gpproved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 Approved For Release 2005/12/14 :CIA-RDP80B01554R003400050017-6 ing s~-stem of fifteenth- and sixteenth-cenrliry England? "If I ~~?rite an article," i~larchetti has told ~.nthany Lewis of the I\Tew York Times, `I al~z-ays ha~?e to