DAYCO FILE DUBBED SECRET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00806R000201060013-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 6, 2010
• Sequence Number: 13
• Publication Date: September 25, 1983
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/08/06: CIA-RDP90-00806R000201060013-8
DAYCO FILE DUBBED "SECRET"
UNITED PRESS INTERNATIONAL
25 September 1983
Citing a potential "serious " threat to national secur"
government. has refused to release files relating to Dayco Cc
firm's dispute with a New Ycrk trade agent about bogus Soviet, ers for Da co
goods, it was reported Sunday. y
The government said nearly all of the more than 200 pages of documents, which
include C,IA and FBI files on the investigation, are highly sensitive and
"secret'', Cox News Service reported.
The investigation centers on a dispute between Dayco, based in Dayton, Ohio,
and trade agent Edith Reich, who placed $120 million in phony Soviet orders
written by Ms. Reich for industrial hoses and V-belts manufactured by Dayco.
In opposing the release of the information,the government revealed that it
had conducted covert investigations- both in the U.S. and overseas- in
connection with either Dayco, Ms. Reich, or the companies she heads.
The government's ''acknowledgement of involvement by the Central
Intelligence Agency, plus its admission that the CIA investigations relied
on 'undercover' agents to 'collect foreign intelligence' raise new questions in
the controversy, '' said the news service.
Until recently the controversy, which began in 1979, has been looked at as a
complex business-fraud case.
References to the CIA and FBI documents were contained in papers filed in
U.S. District Court in Washington in'response to an attorney representing a
Dayco stockholder who has sued company officers and directors.
Donald B. Lewis, Philadelphia, had requested that the Justice Department
release any information on the Dayco investigation, the background of Ms. Reich
and the two companies she heads, Foreign Transactions Corp., New York, and
Trachem Co. Ltd., London.
In the suit, Lewis' client charges ''mismanagement and waste'' in connection
with the losses the company sustained from.the phony orders.
In a response to Lewis' request, the government disclosed that the documents
contain detailed descriptions of intelligence investigations conducted by the
FBI and CIA.
The government did release copies of most of the 200 pages, but .with. the most
of pages blacked out with the exception of the word ''SECRET'' or
''CONFIDENTIAL''. The article stated that several documents indicate that the
files were directed to or were authored by the director of the FBI.
"The withheld information relates to the consideration, implementation and,
or results of certain intelligence activities conducted by the CIA, '.' stated
an affidavit accompanying the government's response.
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Sanitized Copy Approved for Release 2010/08/06: CIA-RDP90-00806R000201060013-8