20-TON EXPLOSIVES SHIPMENT TO LIBYA LINKED TO EX-AGENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000100760007-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 28, 2010
• Sequence Number: 7
• Publication Date: August 30, 1981
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/06/28: CIA-RDP90-00552R000100760007-2
STAT
ARTICLE APPEARED
ON PAGE 44-
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PEW YORK TIMES
104
30 AUGUST 1931
20-Ton Explosives Shipment
To Liby, Linked to Ex-Agent
The following article is based on reporting by Philip Taubman and Jeff
Gerth and was written by Mr. Taubman
Special WTIION.YorkTum
WASHINGTON; "Aug. 29 =-- Twenty
tons of plastic explosives were secretly,
and illegally shipped from the United
States to Libya-in 1977 for use.?in- the
manufacture of bombs for terrorisin In-
a deal organized by a former agent for
the Central Intelligence Agency, ac-
cording to Federal-.investigators and
participants in the transaction.
These sources '3ald.that' the deal,
which involved financial- transactions
on three continents and the manufac-
ture of the explosives In Canada and In
four states,. was consummated when
40,000 pounds ctC-4explosWe compound
were flown from. Houston Intercontinen-
tal Airport to Libya in October.I977.. riff ,?:
The Federae.-iol rces'desci'ibod.the
shipment as one of the: largest. illegal
movements of explosives ever Investi-
gated, by the Government- C-4 is a
powerful plastic explosive frequently
used by the military for demolition
work. =
The former z intelligence agent who
made the arrangement, Federal investi-
gators ano participants said, was Edwin
P. Wilson. In 1976, according to Federal
authorities, Mr. Wilson closed a deal.
with the Libyan leader, Col. Muammar
el-Qaddafi, to use his expertise in Intelli.
gence, arms and explosives to train ter-
rorists inLibya.
Explosives Made Into Ashtrays
Mr. Wilson was indicted I:.1980 by "E
Federal grand jury on charges..of 1118-
g ally exportlng.explosives to Libya.-fa
connection .w irh:earlier, smaller,-
ship-meats separate from. the 20-ton transac
lion. Mr. Wilson-is now a fugitive, be-'
lieved to be living in Tripoli, the Libyan
capital.
The 20-ton: shipment has beefs:under
investigatloaby the Justice and-Treas-
ury Departments for more than a year,
and officials said that indictments are
expected to be-handed up by a grand
jury here In September.
Arrangementsfarther shipment, Fed.
eral. investigators said. began. In the
summer of 1971: $ thattiara, investiga-
tors said, Mr. Wilson had established fa- The C-4 manufactured in Canada,
cilities outside Tripoli and in Benghazi New York. and California was trans-
f i ported by truck to I. S.. Brower and As
-__..._
- - . __-,_
tune o
for the
bombs for terrorist acts. These devices,
made out of.the plastic explosive com-
pound,...-were shaped--, as- ashtrays,
attache cases, coat hangers, rocks and
other ostensibly harmless items, -
To create the devices and?to instruct
Libyans in their use, Mr. Wilson hired
and brought to Libya a small group of
American explosives experts, including
several former Army ordnance officers,
investigators said.. The. group also in-
clude? one former. Government ord-
nance "expert who had: worked at the
White House, on detail to . the. Secret
Service, to handle bomb threats against
presidentCarter. He later became a
Government witness.
A partial description of this operation
was included In the 1D80 indictment of
Mr. -Wilson and Frank E. Terpil, an-
other former C.I.A. operative who was
also charged with illegally shipping ex-
plosivesto Libya.
Companyon Coast Involved
In July 1977, shortly after the acciden-
tal detonation of one device killed three
Libyans and wounded two Americans,
one seriously. Mr. Wilson initiated dis-
cussions with a California explosives
manufacturer about obtaining "a ship-
load"of the C-4 compound.: federal in-
vestigatorssaid.
The.,' manufacturer, Jerome.. 5-
Brower,;was Indicted along with Mr.'
.)Vlrlal.ca .. L -.-V .,. .- .- .. ..... - l
packed and sent by truck as a single
shipment to Houston for final handling
and forwarding to Libya,.Federal inves-
tigators said.. They said that the C-4
made in Texas and., Louisiana was
shipped directly to Houston.
According to two participants In the
operation, who asked not to be named,
Mr. Wilson turned to a Hotstea ocean; and air freight shipping cornplIny he
had helped establish for;he oper tion's
final and most sensitive stages: the con-
solidation and packing of the C-4 and
shipment of the explosives to Libya. ' ' -
? ? At 'the time .the company, Around-.
world Shipping and Chartering Inc., had
offices in Washington and Houston. The.
Washington office was at 1425 K Street
N.W. In the same suite that housed sev-
eral other companies operated by Mr.
Wilson, according to District of Colum-
bia records.
Mr. Wilson, the two former associates
said, did not want to use the company di..
rectly. They said.he feared that It would
be shut down by Federal agencies and
possibly charged with criminal activity
if the operation was discovered and that
he would lose a key link in the chain of
American corporations he had helped
establish to handle both. legitimate and
illegitimatebusiress.'-..;.
Cargo Company`Didu't Know'
Instead, the former associates said,
Mr. Wilson-turned.to:.officers and. em-
Wilson and Mr. Terpil. last year for his i ployees of Aroundworld and Instructed
involvement in. earlier.. smaller ship- , them to store, pack and ship, the C-4
ments' of _ explosives to Libya. Mr:: using outside facilities and cargo han-
Brower,'president of J. S.?. Brower and dlers. Aroundworld itself was not be in-
Associates, an explosives : tnanufactur ' valved, he reportedly said. ? '
ing :and. distribution firm in Pomona, ? These employees turned to an air.
Calif., pleaded guilty earlier this year to : freight forwarder. in Houston to make
one count, of illegally shipping explo . specific arrangements, the participants
sives said.-.The air freight forwarder, in turn,
To. finance purcliase of the C-4 explo - contracted with WITS Air Freight com-
sives, {Mr Wilson -.arranged for the . pany for storage space near Houston In-
transfer of-about $250,000 from the- tercontinental Airport. "WITS didn't
United Bank of Switzerland to an assocl )mow what they were storing,." said one
ate of Mr. Brawer's, according to Fed-,. maa.involved in the shipment.
eral investigators. For transportation of the explosives'ta
Inspectors of the United States Cus- Libya, Mr. Wilson's men contracted
toms Service subsequently found the as- . with a small air charter company based
cording to the two participants-and thej
Federal invesdgatara iftey ? said ' they
company,operated a.DC.8 that,,it, used
Sanitized Copy Approved for Release 2010/06/28: CIA-RDP90-00552R000100760007-2