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December 16, 2016
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November 9, 2004
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March 21, 1978
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PDF icon CIA-RDP88-01315R000400160027-5.pdf161.92 KB
Approved For Release 2005/01/12: CIA-RDP88-01315R0004a01'6I027 ,,l _.j--.~e_ --T T ARTICLE APPEARED ON PAGE 2 THE WALL STREET JOURNAL 21 March 1978 G` t;4 /. aY /ft) e, w; l ft i U .S. Charges 2 I T T Aides Lied to Senate 'On Figs Bid to Stop'7OAllende Ywwry.. By JERRY LANDAUER Staff Reporter of THE WALL STREET JOURNAL .WASHINGTON-After months of indeci- sion, the government filed criminal charges against two executives of International Tele- phone & Telegraph Corp. for giving false testimony to the Senate about the company's clandestine efforts to stop Marxist Salvador Allende from becoming president of Chile in 1970. But the Justice Department dropped pos- sible prosecution of ITT Chairman Harold Geneen. This decision brought cover-up ac- cusations from Edward Korry, the Ameri- can ambassador in Chile at the time of Mr. Allende's rise to power. In a telephone inter- view, Mr. Korry alleged that Mr. Geneen isn't being prosecuted because "he knows too much" about the Central Intelligence Agency's relationships with U.S.-based multinational corporations around the globe. ITT hadn't any immediate comment on l the former ambassador's allegations regard- ing Mr. Geneen. In another development, the Overseas Private Investment Corp., or OPIC, made available documents showing that the CIA lied about its own-and ITT's-secret fi- nancing of Mr. Allende's chief opponent in the 1970 election. Possibly in part because the CIA refused to acknowledge that ITT cooperated with the agency's efforts in Chile, OPIC, the gover- ment agency that insures U.S. companies' investments" abroad, eventually honored I'TT's $92.5 million claim arising from the Allende government's expropriation of ITT properties. The Justice Department's charges against Mr. Geneen's subordinates, Senior Vice President Edward Gerrity and Robert Berreilez, a regional public relations man- ager, were filed just as the five-year statute of limitations was running out on some of the alleged-criminal acts. The two men waived their rights to indictment by a grand jury, opting instead to let the government file "criminal informations," each charging six felony counts of perjury, making false state- ments and obstruction of the OPIC proceed- ings. ITT promptly issued a statement ex- pressing confidence In the two men and pre- - dicting a verdict of innocence after trial. "Our executives have cooperated (with the Justice Department) and have had the full support. and backing of the corporation," the company's statement emphasized. ITT doesn't know of any "reason why their testi- mony would have been other than truthful and ITT continues to have confidence in Mr. Gerrity's and Mr. Berrelles's integrity. They both continue to serve as valuable execu- tives of ITT. We are fully confident they will be found innocent." Despite the company's strong affirmation of the men's innocence, Messrs. Gerrity and Berrellez actually have been plea bargain- ing with Justice Department attorneys for several weeks. In all likelihood, sources said, the government ultimately will accept pleas of guilty to relatively minor misde- meanor counts, as it 'did in the case of for- mer CIA. Director Richard Helms. Mr. Helms pleaded guilty to giving less than candid testimony to congressional commit- tees investigating the CIA's involvement in the 1970 Chilean elections. Yet even if the accused executives don't choose to stand trial, the details of U.S.'gov- ernment and corporate intervention in the 1970 Chilean elections are generally known J starting with hearings by the Senate Sub- committee on Multinational Corporations that began in March 1973. The Senate Intelligence Committee sup- plied further details in 1975, including an as- sertion, based on examination of CIA files, that the CIA rendered "advice on how to pass" l350,000 to Mr. Allende's opponents . by ITT. "A roughly equal amount was passed by other U.S. companies," the Intelligence Committee related; these companies haven't all been Identified yet. Besides, according to the two Senate committees and to the hearing record of an OPIC arbitration panel, ITT offered to give the U.S. government 31 million as part of any plan to thwart Mr. Ailerxie's election;i discussed plans with the CIA to create eco- nomic chaos in Chile after he became 'presi= dent (Mr. Allende was ultimately over; thrown by a military coup); solicited other ,companies to join ITT's anti-Allende initiate eves, and urged the White House "to see that Allende doesn't get through the cruciak next six months." Mr. Geneen testified about the ' dma rented events under oath to the Sena multinational subcommittee on April 2,1973 "ITT didn't take any steps to block the elect Lion of Salvador Allende as president of Chile." the executive swore. "Nor did IT. contribute money to any person or to any agency of any government to block the elec- tion of Dr. Allende," -Mr. Geneen also as- serted. . The CIA fed the same story to OPIC be- ginning in 1972, when that agency Was con- sidering ITT's risk insurance claim for ex- propriated properties of the corporation's Chile Telephone Co. As OPIC explained to the CIA in a letter, the U.S. government isn't liable if ITT provoked the expropriation "unless the ac- lions by the company were taken at the spe- cific request of the U.S. govertunent:' In a reply letter that turned out to be less than truthful, the CIA's general counsel re- sponded that ITT didn't carry out any "ac- tivities at the request of this agency and we don't know what activities, if any, the corn pany in fact engaged in." OPIC nevertheless rejected ITT's insur- ance claim, whereupon the company exer- cised Its legal right to convene a panel of ar- bitrators. Again OPIC asked the CIA for in- formation about- ITT's intervention in the Chilean election and. again' the intelligence agency chose to protect its relationship with ITT rather than tell the truth. "We haven't any documented informa- tion which would clarify for OPIC the basic question of whether ITT did engage in ac lions which `provoked' the government of Chile into nationalization proceedings against ITT's subsidiary, the Chile Tele- - phone- Co.," the CIA said, declining to per- mit testimony by William Broe, in chzrge of clandestine operations for Latin America. s In November 1974, the arbitrators ruled in the company's favor. Among other find- ings, the arbitrators. held that ITT's activi- ties in Chile were "very limited" and that the company's 5350,000 political contribution -"if in fact one had been made"--didn't constitute a violation of Chilean law. -. OPIC decided some time ago that It wouldn't reopen its proceedings in the IiT expropriation case., Mr. Gerrity, among othei`ihhings, told the Senate subcommittee that the company's $1 million stop-Allende offer to the U.S. govern- ment was intended "to confirm our confi- dence in and to help the Chilean economy" and that Mr. Geneen's apparent motive was to help launch low-cost housing or farming projects for the poor. Mr' Berrellez. among other alleged crimes, was accused of partic- ipating In a conspiracy to prevent the Senate panel from learning about exchanges of in- Approved For Release 2005/01/12 : CIA-RDP88-01315R0064VD"N en ITT executives and CIA - officials,