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Document Creation Date: 
December 22, 2016
Document Release Date: 
January 12, 2011
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Publication Date: 
January 20, 1982
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PDF icon CIA-RDP90-00552R000605840013-6.pdf142.43 KB
Sanitized Copy Approved for Release 2011/01/12 : CIA-RDP90-00552R000605840013-6 OAKLAND TRIBUNE (CA) 20 January 1982 Former CIA agznts UpDyfl too~S ofr ~' By John Dingea and Saul Landau - - WASHINGTON-The key government wit-, ness in the crir'mnal case against two former CIA agents accused 'of providing terrorist. training and equipment to; Libya has -alleged in,_an interview that the same agents sold banned *weapons and electronic devices`to-the Chilean secret police in I97$ with the knowledge of senior CIA officials. :,;.. , The witness, Kevin P. Mulcahy,; is a-former CIA employee himself and former.-business as- sociate of the.. two ;fugitive ex-agents who- have .been under indictment. since April 1980. Mulcahy said that he attended a July. 1976. meeting. in ,.a Washington townhouse in }vhich Col.%Manuel 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; Therneeting was organized, Mulcahy said, by has been-the focus of a JusticeDepaitment inves=''_ ,tigation into the :transfer of explosives; timers, night-vision: equipment and-commando?training?to,? :Libyan leader, Muammar - Khadafy. ;Wilson ? and .Aprir"198O' bya??1Washington D.C., "federal'grani jury for theirpalleged` illegal'-suppl'j :'o eratiom`'to,~:: Libya ~~-f>z":rt j~Ax-i- SZ, sentia inNew York=for selling.machine"guns: ta-- undercover police`detectives. `Heywas.,"::indicted. Mulcahy's account of tb'e supply contract to Chile' for the first time broadens the scope . f Will son and Terpil's,alleged terrorist supply,.activities 'beyond'the tworadical.!fricannations=to include' The timing-of-Contreras' meeting;in_Washing- July,'`also is si lficant'1or another.'crime,?Ahe assassination' in Washington Sept. 21;:1976-, of. ex- iled`Chilean. oppositionileader Orlaiida::'Letelier. federal investigatiorr Contreras.; had-set that a's== .sassination plot'-' In' motion ?-in Chile ~-in 'the Iast :.;'A federalr'grandfririry indicted`Contreras' for; allegedly ordering, e,' car -bombing; that, killed Letelier and. an w, can wotan, Ronne Moffitt, on Washington's' Ma ? chusetts -Avenue, , but:.the government-;of, ChiI has'rejected` V S requests ,foc'his extradit od ,`; ',:=? ~s Vic' ?i _The' Mul cause he 'said were'working -ation'of-the C has said that Wilson's -clo Shackley; the. ,service. at' th CIA's-trainin =have been named byauother government witness, Douglas M: Schlachteras having endorsed Wilson and.Terpil's alleged involveinent-in- terrorism training in Libya. J` The CIA has consistently denied any institu- tional--recognition of Wilson and:'.Terpil's-.opera- tions' and has produced-evidence-that it?notified Justice Department and 'FBI' officials immediate- ly , upon learning of their= allegedly--illegal activi- ties overseas. CIA-officialswho have4nvestigated' the have conceded- that. the so: called" ,rogue'. operation was aple-:to-; flourish because of close relationships that. continued be-~ ?weerr the former agents and active:-duty- CIA officials. Mulcahy's account of the Chilean arms trans- action' was confirmed by documents-drawn up for. the ' sale. and the Treasury. Depart- ment's Bureau of Alcohol, Tobacco and Firearms These='documents' included invoices and _bills - of, sale 7drawn :up.-- byr;:one of Wilson' and Terpil's{ companies, Inter'-Technology,- Inc. The purchasers 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 ' *~ --" - - The sale to Chile of arms and:'intelligence:, equipment, such as that listed on_ the invoices and' = `described. by Mulcahy, was 'prohibited' by legisla tion -'passed. earlier`in 1976 :in response' to denun ciations o .rampant - human rights bviolations . by Chile's military government' ::'Mulcahy said Terpil'brought.him.and another, business associate-a-, former naval intelligences '.officer, to-the meeting`.on'a rainy Friday. after-' `noon'in `a- northwest. : Washington' House''on R. Street that he"said-'looked like :"a-typicalCIA!, .safehouse." He was-introduced to=a heaVyset'man' .,'identified as'"Manny":Contreras Sepulveda aad al second ' Chilean'who- acted as interpreter and', whose name he does not recall '" *s _Terpil was. "deferential". to Contreras, ?Mul , '- cahy said. "I-had seen Frank slap: heads of state on the back; but'with this guy he-was downrightt+ respectf>zl, and; kept' his': voice dowo." - - Sanitized Copy Approved for Release 2011/01/12 : CIA-RDP90-00552R000605840013-6 vN L)