EB PHOTOS LEAKED, PANEL SAYS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00561R000100020048-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: February 17, 2012
• Sequence Number: 48
• Publication Date: February 28, 1985
• Content Type: OPEN SOURCE

Declassified in Part - Sanitized Copy Approved for Release 2012/02/17: CIA-RDP91-00561 R000100020048-7
HARTFORD CO~RAyT (CT)
28 February 1985
EB Photos
Leaked,
Panel Says
House Investigator
Charges Secret Data
Given to Veliotis
General Dynamics Corp. top official
allegedly gave P: Takis Veliotis, fors
mer general manager of its Electric
Boat division, "highly sensitive"
photographs of the Trident subma-
rine months after Veliotis lost his
security clearance and fled the coun-
Leha.an is away from Washington,
said only that the Defense Investiga-
tive Service is investigating
Electric Boat because of the leak
and thLt the Naval Investigative
Service and the FBI are cooperating.
A sprhes ,.a for General Dynam-
ics decl.ned to comment on the mat
ter.
Dingell's committee opens hear-
ings today in to allegations that Gen-
-amiss has filed false cost
eral D
,
By JOHN F. FITZGERALD overrun claims, misled stockholders
Courant Staff Writer and given presents to Pentagon offi-
WASHINGTON- An unidentified
D' e11 letter said the
n
hardening features,' the absolute sensitive financial data on General
speed, maximum depth, noise quiet- Dynamics operations and profits and
ing techniques, as well as other char- reportedly was provided to high-
acteristics," Dingell wrote to Leh- ranking company executives at a
man. conference at the Wigwam Country
"This information would undoubt- Resort in Arizona Oct. 22, 1982. four
edly be of tremendous value to the months after Veliotis left the compa-
Soviets," the letter said. ny.
A committee investigator said he -Dingell said Veliotis got the docu-
has no reason to believe Veliotis ment and other General Dynamics
gave the documents to .any foreign financial documents frorn.a General
nation. In his letter, however, Din- Dynamics top official in March 1983.
gell asked Lehman if he knows Dingell did not name the executive
whether the Soviets obtained the or speculate on the executive's mo-
photos. tives.
Dingell also quoted a top Navy In Tuesday's editions of the St.
admiral, whom the committee will Louis Post-Dispatch, Veliotis is
not identify, as saying the United quoted as saying Fritz G. Tovar, who
States would pay $1 million to get 1P
ced him as general manager at
similar photographs of the Soviets' :ric Boat, made the documents
missile-firing submarines. a:, fable to someone at General Dy-
n.. -
g
a] Dynamics document revealing
the "most sensitive characteristics
of the construction and operation of
the Trident" was given to Veliotis
nine months after be resigned from
General Dynamics in June 1982.'
try to avoid federal prosecution. liotis lost his security clearance
-Rep. John D. Dingell, D-Mich., when he left the company.
chairman of the Energy and Com- Veliotis was a subject of..a federal
merce Committee, made the allega- grand jury in New York at the time
tion in a Feb. 19 letter to Navy and has since been indicted on
Secretary John V. Lehman Jr. allegations he accepted $1.35 million
In the letter, which Dingell re- in kickbacks from a subcontractor
leas^de eaves av the congressman while he managed a General Dy-
ask?R d Lehman to give and namics shipyard in Quincy, Mass.
,avv assessments of the damage e Veliotis fled to his native Greece to
leak caused to national security. avoid prosecution.
"We were told if the Soviets ob- Sources close to the investigation
tained a copy of the photographs] said photographs in the company
they could conceivably determine document were classified "confiden-
the most important and secret fea- tia]" although they were not marked
tures and capabilities of this sensi- that way.
tive weapons system, such as shock- The document also contained
F. Goodrich, acting secretary while
A response Monday from James narn.ics' Quincy shipyard.
Sources say Veliotis subsequent-
ly acquired the documents from a
too executive in Guincv. At the time
of the leak, Vebctis was participat-
ing in an attempt. later aborted. to
to :e over General D} namics by buy
'_r its stock. The financial infor-
rn t'.zr. is the documents would have
been valuable in that attempt,
sources said.
Dingell said Veliotis gave copies
of the documents to The Washington
Post, and the newsna er is under-
stood to have shown the c Dies to the
CIA, which regards the episode as a
serious breach of national security.
Other copies have been given to
the Navy and to Dingell's commit-
tee, which has jurisdiction over the
security laws that govern General
Dynamics' corporate behavior.
Witnesses scheduled to appear be-
fore Dingell's committee include
David S. Lewis, chairman of Generi.l
Dynamics, and Gorden E. MacDon-
ald, the company's chief financial
officer.
Also scheduled to testify is James
E. Ashton, a former assistant to VE-
liotis at Electric Boat who Veliot.is
said raised the ire of Lewis by calcu-
lating that production delays and
cost overruns for submarines under
construction by Electric Boat we.! e
far greater than the company wouiu
publicly admit.
STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/02/17: CIA-RDP91-00561 R000100020048-7