SUPPLYING TOOLS OF TERROR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000403680021-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 27, 2010
• Sequence Number: 21
• Publication Date: January 20, 1982
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/08/27 :CIA-RDP90-005528000403680021-9
OAKLAND TRIBUNE (CA)
20 January 1982
8v Jahn Dir~aea~anct Saul landau =~"'~
. ? 'WASHINGTON-The key government-wit-
Hess in the criminal case against two former CIA
agents accused 'of providing terrorist training and
equipment to:Li6ya"has~alleged in;'aa interview
that the same^ agents sold. banned'areapons and
electronic devices'to~the Chilean secret police in
I97&~ with the knowledge of senior CIA officials.;
. _ _..-
"The witness,,Kevia P. Mulcahy? is.at;former
.CIA employee himself"and...former~business as-
sociate. of the.. two.;fugitive ex-agents~,whoo- have
;been. under indictment-since April 1980. Mulcahy
said "that he attended aJuly-19~g. meeting: in , a
Washington. townhouse irr yvhich CoI~Maauel Con-
treras, head of Chile's intelligence service,. DINA,
discussed. his-.need ~,for..handguns~,ssophisticated
electronic security equipment and'_a:-.small ball-a
point .pen-like. device capable of firing ,a single;
.2.2-caliber round or a, pellet ,of poison..: :. k;; ~~
The~meeting was organized, MaIcafq said,. by
Frank E:`Terpil;:whaalong with Edwin P: Wilson;
has beenahe focus of a JusticeDepartmeat inyes='-_
aigation into ",the=transfer of explosives; timers,,
Libyan leade~=Muammar Khadafy~wilson:4,and~
jury for their}alleged?_illegal?'?siipprj~;operation*;to
? _ ' 'In' addition
Terpil~ tins
been` convi~cfed is tali-j
.
.
,~
sentia in' NeW York=for selling:machine
'guas'td
,
'undercover police:detectives..?Hengras(,;indicted:`;
tagain~this month:for=alleged`illegaY?supply opera
"tions~ begianing?'ia':'2977' fo-"Uganda's`-deposed
=strongrrsan;.Idi`Aaiia_ x six } z "t:~a~? ,sue ~- " -__
.Chile for the first=tLme broadens tlie: sco~e_of' Wild;
beyond' the twa; radicaLAfricaa~~nat~ons: to include
` "The tiniingof:Contreras' meetmgn.Washing-
`July; 'also is; s~gaificant'for anotherr cnme~~the
assasslnatioirin Washington Sept.,,21?f8~76'; of.ex-
; federal investigationy Contreras~~'had'set' that- a's=-
r--r -
'week of June, just. prior, to hissalIegefi trip tos
Washington:. ? ri>~,
~Letelier and:ari-'Ame
~;~cai =bomtiing ?what:; killed
can?s~oman Ronnl~Moffitt;
fo;'hs,eatiadition',
ha`sTre~ecfed~requests;
T..:..,
". ` ":The' It2ulca
cause'he said h
were working w
ation"of? the CI
has said,?that h
Wilson's` close
Shackley.: the
-`service at' the t
~CIA's'training c
.have been name er avernmen wi Hess,
~Douglas,M:~Sehlachter~as having endorsed Wilson
and Terpil's alleged involvement ia-terrorisrn j
~traiamrig in Libya. _ x``. ~ ~?~?=~`~ ?j
'The CIA has consistently denied any institu-.
tionaF`recognition of Wilson and ;Terpil's opera-
tions~ and has produced>evidence-that'it'~notified
JusticeDepartment and ~FBi officials immediate-
ly upon learning_of~,their~allegedly~illegaI activi-
`~
1
'.ties overseas - - "
~ "
_
the.Wilson-Terpil.case have conceded that- the so-=i
called' ;`rogue"_"operation was aple-:to flourish
`because of close relationships that continued. bey
~.ween the former agents and active .duty-.CIA
_ ~~ Mulcahy's "accourit-of the Chilean arms trans `
action was confirmed by documents drawn up fon
the included invoices t-and 'bills of,
sale drawn u~~ byr one= of ' Wilson. and Terpil's{
companies, Inter-Technology; Inc.: The purchaser,i
listed on the document as-Renato~Sepulveda-R_ of:
Universal Export Co. in Santiago, was identified;
by federal investigators as. a suspected -DINA:
front organization in?Chile~-^~---~~=~
_,
described"bg`Mulcahy was prohibited'b3r legisIa~
tion"passed ~earlier'm I978:in response~to denun=
'%ciations' o ;rampanf` human =rights:violations
by
.
i
-Chile's military government:''' ~ `x~r--}'f> - ~' _`:.
:'Mulcahy said~Terpil'brought.him.andanother,
business associate,.'a' former naval ;intelligence
'
::officer; to~the meeting:on
a ramy~Friday~a~ter a
`pooa in 'a northwest:Wa'shingtori .House on? R:
:Street- that: he"~saiil .looked: like:."a_=typicai'~CIA'.
second~Chilean- wlio~ acted'as=interpreter: and;
' whose name he does=not`recall ~"_~s;.3'~~ : '' `~.~
-: _Terpil wasp"deferential". to Contreras;~~Muh
:~cahy said. "I_had'seen Frank slap heads of state'
on the back; but"with this guy he-was downrigbt'~
`.respectful.: and:lieptrhis=voice-dowr