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August 7, 1974
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Approved For Release 2005/11/28 : CIA-RDP91-0090' R000600100002-2 ADMINISTRATIVE - INTERNAL USE ONLY 7 August 1974 MEMORANDUM FOR THE RECORD On 6 Ausust 1974, Mr. John A. McCone palled from Los Angeles to ask if I couThrlIffrerro=rro meet with General Andrev Goodpaster at SHAPE headquarters on 5 September 1974. Mr. McCone wants to confer with General Goodpaster about disarmament and arms control matters in preparation for a meeting of the General Advisory Commission on Disarmament on 27-28 Septtmber. McCone said that he had written Mr. Colby suggesting thct the DCI briefing be up to snuff. McCone usked how President Nixon's disclosures of 5 August affected Helms' testimony. McCone said that he had had many queries to the effect that the President's disclosures confirmed the suspicion that the Agency was involved after all. McCone said that he argued the contrary point, but would be grateful if we could furnish him a background paper WALTER ELDER Chief, CIA History Staff Approved For IMASINIZOOMOIC GIAMMIdikaNtlEt30ea(83/00002-2 MORT!, (1';77,1 YORK) Approved For Release 2005111Y.281: CIA-RDP91-00901R000600100002-2 5 r---71-1 (-7-1 , A ? ?? t by Bartlett's own admission. his Sent. was based on the ITT report?in pieces t of paraphrase. He wrote about several occuring in Chile that he cculd not . . ii1JU p0:IUCS be left to the Chileans." He did :not inform his readers that he had a document in his possession that indicated that Chilean polities were being left, to the Central Intelligence Agency and FIT. "I was only interested in the political 271;,.!ysis," Bartlett explaiiK..d in an interview. "I didn't take seriously the 1Vashinion description of machinations within the U.S. government. [ThelAiipinavediforReldeasec-2006/11/28 had not been in Washington; they had been in Ta., except- under aglutly controlled :es. No media outlet in the country has :ed a full-time correspondent to the very few report on its activities, even on basis. Except in those cases where the to lee% some information, almost 211 .nel avoid any Contact w.httsoever with In fact, agcney policy decrees that nust inform their superiors immediately ;ersations with reporters. t when Allen Dulles headed the CIA and Cold. War anti-communism was still rampant, two disasters hit the CIA that newspa.)ers learned of in advance but refused to share folly with their readers. First came the shooting eleAvn of the U-2 spy plane over the Soviet Union in 1 O. Chalmers .Poberts, long the ll'(7.7,1:if:glon Post's diplomatic .correspondent, coMlims in his book Fir.;t Ro2,7;i1 D rt.ft (Praeger) that he and "some other newsmen" knew about the U-2 flights in the late : ctikTIAD(P 1 il49941 RP 9 II,P WAQI Pggrq explains: "Retrospectively, it seems a close question as to whether this was the ri.tlit decision, but I thinit it r oietvd F ? _i. 0 Z By RF.RBERT E. ALEXANDER At many turns in the unfolding tale of Watergate, the role and propriety of cam- p:aign contributions from big business. have come under scrutiny. The extent to which the business com- munity did, in fact, bankroll the' Repub- lican effort in 1972 has caused concern to a number of election reformers. Of partic- ular concern are allegations of large con- tributions from maior defense contractors. This is unquestionably a legitimate ques- tion, but one that has frequently generated more heat than light. A study recently completed by the Citi- zens' Research Foundation, a nonpartisan . -organization, helps put the 1972 role of . large contributors from America's board- rooms into perspective. The results, an extensive compilation which goes well beyond anything prepared to date by groups such as Common Cause or any of the Federal agencies concerned, do not exactly exonerate big business of the charge of partiality. But neither do the statistics suggest a picture as distorted as . that presented by some of the reform! groups. (sr The Citizens' Research Foundation has E analyzed political contributions to the 1972. campaign, in amounts of $500 or more, that were made by officers and directors of the 25 largest contractors for each of -these: the Defense Department, the Atomic Energy. Commission and the National Aero- nautics and Space Agency. For comparison, such contributions from the 25 largest in- dustrial companies on Fortune magazine's 500 list were also studied as a 'control ? Ion o wn .) The composite list totaled only 72 corn-' panies (instead of .100) because of dupli- cations. The General Electric Company, for, example, appeared on all four "ter) 25" lists. Other companies were .on two or three. The total number of officers and, directors of the 72 companies was 2,160., The saudy showed about 30 per cent. (642 persons) of these members of the top echelons of American business to be. large contributors ?$500 or more. Their total contributions approached $3.2-million. This represents a far higher proportion of givers than in the electorate at large. National surveys estimate that, in a Presidential year, perhaps 10 per cent of adults make financial contributions. Support for Republican candidates dom- inated. teef the total of S3,193.000 reccirded in the study, 32,746,000 ? 86 per cent ? went to G.O.P. candidates or committees. The Democrats got $398,000, while $49,000 went ei3ewhere ? to minor parties and poll?-cal action groups. The study puts new focus on what some critics tend to see as a sort et' lilac contribution from the board- room M return for Government contract Incidentally, is actual iving?the (:-,.t.e.7,ory of money' Lnat ioend to have ten ilicFalbccon- tribu:._,1 7 m cotTorate4PFPORR Ingi-21R tegepanies were among those having made i!egal contribu- tions. For example, the Gulf Oil Corpora- tion's gift of $100,000 to the Committee to Re-elect the President was subsequently returned. Other illegal Gulf money went to the campaigns of Representative Wilbur D. Mills ($15,000) and Senator Henry M. Jackson ($10,000). Gulf's totals for this study's purposes were $14,900 to the Re- publicans and $10,623 to the Democrats? till from officers and directors of the com- pany and all perfectly legal, so far as is known.)) The Citizens' Research Foundation broke down the contributions from three groups , ?officers of a company, those who are ' both officers and directors and those from outside the company who are directors. It is from this last group that the bulk of campaign contribution was made to both , parties. ? Some 66 per cent of the total amounts contributed in 1972 came from the outside. directors. Many of these men (no women) come from the financial or legal world. In most cases, because of position and wealth, they serve on a number of boards, They are far more likely to be tapped in major fund drives. Forty-three per cent of these outsiders, 1 for example, were contributors,' Conipare?:! with 23 per cent of the insiders, who are. more likely to be solely concerned with their company's well-being. However, it is difficult to attribute the motives of the contributing Outsiders to any particular - company. - A case in point would- be .John -A. Mc- Cone director of the Central 'hit'ellrgiiiEe. Agency during the Kennedy and Johnson Administrations. Mr. McCone was included in the study because of his directorships on the boards of the Standard Oil Com- pany or California and the International. Telephone and Telegraph Corporation and his gift of $14,000 to the Nixon campaign. However, Mr. McCone is also on the boards of the Pacific Mutual Life Insurance Com- pany and the United California Bank, com- panies not included in this study.' Therefore his interests are diverse and cannot be con- fined to any one company. Interesting variations emerge among the three different groups of Government con- tractors that were studied. The percentage or large contributors was highest in the group of Pentagon contractors ? 37 per cent of their officers and directors made, large gifts in 1972. ? At the A.E.C. and NASA contractors, the comparable figure was lower, about 30 per cent. The level was highest of all among officers and directors of companies on the Fortune _500 list, where the impact of Government contracts could be more diffuse. Put another way, the level of large con- tributions, particularly to the Republican party, from individuals tied to defense- contract companies is, from this evidence, below what it is for the top-level business community as a whole. A point worth emphasizing- about the eqo:,$,wvtigol#,P.AKarktA501.4* L -3 ? to the G.O.P. for every Si to the Democrats is that these were not exclusively gifts to a Presidential race (in which the im- balance could be explained by business- men's skittishness over George McGovem's economic proposals). The gifts also in- cluded money for races in the Senate and House, wheie the Democrats have been in control a long time. That control, and its accompanying power over millions or dol- lars in Federal contracts, apparently had little impact on the natural Republican proclivity of these businessmen. These totals also included money for state races in 10 states, where control at the state level might have economic implications. The Democratic money tended to be spread far more thinly than the Republican Contributions, partly because of the greater demands from the various Presidential primary candidates. .An example of the kind of financial edge Mr. Nixon had is provided by a look at the -- giving patterns of the top management of the 25 largest Pentagon contractors. Rich- ard M. Nixon got 86.4 per cent of all Republican large gifts from this source; Senator McGovern got only 3.4 per cent a the far smaller Democratic total. An I analysis of large gifts to Presidential con- tenders shows that money from the officers and directors of the big defense contractors. was divided like this: Nixon $1,609,646 McGovern . .... $ 7,450 Lindsay S 73,000 Muskie $ 12,125 Jackson $ 2,327 'Humphrey $ 2,700 ? Sanford S 1,000 Mills S 500 The analysis discloses that, In the case of seven companies on the composite list, there were no large political contributions of any kind by their officers or directors. Five of these companies were big A.E.C. contractors, and two were on the NASA list. These companies were. the .Reynolds Electrical Engineering Corporation? Holmes & Narver, Inc., United Nuclear Corporation, Teledyne Isotopes, Inc., Lucius Pitkin, Inc. (A.E.C. contractors) and Grumman Aero- space Corporation and Federal Electric Corporation. (NASA). - At the opposite end of the scale were 15 ? companies where large gifts were made exclusively to Republican causes. On this list are some familiar names of American- business?names such as Boeing, Sperry Rand, Union Carbide, Dow, Goodyear,Inter- national Harvester and Eastman 'Kodak. And, finally, one contractor had officers. and directors who contributed only to the Democrats. It is the Rural Co-operative- Power Association, from the A.E.C. list On April 7, 1972, a new, tougher cam- paign financing law went into effect, re- guiding disclosure of the names of con- tributors. The new law has since loomed large in the tangled web of the financing of the 1972 Presidential race. Adoption of the disclosure law has made it difficult to plot with precision any in-.. crease in large contributions from major Government contractors in 1972 over the ,-11,,,e Citizens' Research 1 OhglAti YilduNi41-kritical study in 1963 of large contributors from business. The composite list then totaled 70 companies, se" ss ' s ) 10 rr. ic:74 A AlcA.t IWi P' 1-00901P000600100002-2 By Torn Wicker ? Two items from The New York. Times: March 8, 1974: "Secretary of State Kissinger told a Senate committee to- day that he would recommend a veto of the Nixon Administration's own trade bill if Congress refused to grant trade concessions to the Soviet Union because of its restrictions on the free emigration of Jews and others." Feb. 28, 1974: "[A high United States official] pointed out that the Central Intelligence Agency had rejected en offer by the International Telephone and Telegraph Corporation of $1 mil- lion in September, 1970, to be spent in Chile to defeat the Socialist candi- date for the-presidency, Salvador Al- lende Gossens. The offer was made to Richard M, Helms, who was then the -Director of Central Intelligence, IN THE NATION "The Chilean. story is . . in sad ccntrast to Mr. Kissin er's position on Soviet emigration lf policies. that Government's ability to get for- eign credit and cut off foreign aid to it, continuing only to supply arms and training to the Chilean military. Thus, it was troops 'trained by the United States and armed with Amer- ican weapons who overthrew the Al- lende 'Government last - ia411 and?as now seems certain?murdered Mr. Al- lende. 'There are numerous evidences that the officers who ordered the bloody couP and the later execution of 'what appears to have been thousands -of Chileans were encouraged in :their planning by American supporters, both official and unofficial. Nor did the Nixon Administration and its em- bassy officials in Santiago distingnish themselves in saving the lives of ref- ugees, including some Americans. The Chilean story is only gradually coming to light, but what is known is in sad contrast to Mr. Kissinger's po- sition on Soviet emigration policies. He said he regards detente, as of such overriding importance that the UMted States must not endanger it by trying to influence internal Soviet policies. . On the other hand, In pursuit_ of . what it conceived to be the national interest, the Nixon'Administration'ap- pears to have been d'con'siderable in- . fluence in the opposition to, and over- throw of, the Allende Government. . Before that, of course, various Amer- ican Governments had had a? hand -in .numerous interventions (for example, The overthrow of Guatemala's elected ? left-wing Government in the nineteen-. fifties). by the agency's former director, John' A. McCone, who had become an I.T.T. board. member." There is no particular Connection between these two items?except that there is now an intensive effort in Congress to deny most-favored-nation trading status to the Soviet Union if it continues to restrict the emigration of Jess; and that there was in 1970, and throughout his presidency, an in- tense effort by I.T.T. and others to prevent or destroy Mr. Allende's Gov- ernment in Chile. But the Nixon M: ministration that Mr. Kissinger repre- sented throughout the period did not threaten or disapprove the latter ef- fort; quite the contrary. The C.I.A. did turn down the I.T.T. money (although nothing seems to have been done about the scandalous attempt by a former C.I.A. director to bribe the agency, with private money, to undertake interference in the in nal politics or on couni. . But the Nixon AdmiAPP11.9Megle CtEtRIO ? .... . This reflects a double standard, if_ evea there was one. It is a double' standard in the sense that American interests (as perceived' by the Admin- istration in power) May require inter- vention in one country's internal af- fairs but forbid it in another. It is an even more deplorable double standard in that it seems to permit interven- tion fcr certain selfish political or eco- nomic purposes but not for the pur- pose of upholding human rights. This is not necessarily to argue that ? Mr. Kissinger is altogether wrong on the Soviet emigration question; there is in fact much to support his position. ? Anyway, to take a stand for human rights in the Soviet Union might seem a bit ludicrous, since the Administra- tion has such strong ties to Greece, the Chilean junta, Spain, Portughl, South Vietnam, South Korea, the Phil- ippines and other strong-arm govern- ments. , The members of Congress who are demanding Soviet concessions on emi- ? gration, inprever, have their own dou- ble standard; they are not so Vocal about Chilean refugees, of whom only eakg )0`1. TIMTH*Siir4pi R000pool 00002-2 nume other repressive govern ments to which they annually vote Military and other forms of aid, The ? Jewish emigration question, after -all, is of interest to many of them only for obvious domestic political reasons. Under the auspices of the Fund for . Nev Priorities:, some of the same mem- bers of Congress did take part the - other day in public hearings on the situation in Chile. That would be an excellent place for them to show a . mbre general concern for human rights, ?as well as for the established Amer- ican double standard. toward those 28 FEB 1014 - . I ease 200 ti/28 : ClArIRDP911(40901R0004;001?00002' 71, 111(./ LL/41 . 0.1 4 -ri e' (1Y; t.,'STA1 (zd' STK By Martin Schram ? Newsday Washington Bureau Chief Washington?The Central Intelli- gence Agency has about 200 agents /planted in U.S. companies overseas who are en-gaged in covert activities, it has been authoritatively learned. The agents are assigned to those posts with the full knowledge and per- mission of the companies. The CIA re- imburses the companies for the a,gentsr salaries and administrative expenses. The practice is useful to the CIA, which is known to believe that station- ing agents abroad in other U.S. govern- ' meat agencies is often not sufficient cover. The practice also benefits the companies because they receive some information about latest developments and trends. The names of all the conmanies and 'areas could not be learned, but it has ? been confirmed that two CIA agents /Were working abroad under the cover 47 of Robert R. Mullen & Co., the public- relations firm that employed former U.--"CIA man E. Howard Hunt when he went to work at he White House and nhelped plan the Watergate burglary. ?ad The Mullen firm confirmed that its - one-man offices in Amsterdam and Singapore were staffed by CIA agents. Both offices were closed after Hunt's relationship to the firm was publicized. ? Mullen's Singapore office was closed in September, 1972, the Amsterdam Amsterdam office in June, 1973. Sen. Frank Church (D-Idaho), chair- man of the Senate foreign relations subcommittee on multinational corpora- tions,- after being informed of the prac- tice, said, "The subcommittee will make an immediate inquiry, into this wit ? the ? It has long been belieVed that the. CIA had close ties with U.S. companies abroad, but the involvement has never been confirmed to this extent. In 1970, the International Telephone ? and Telegraph Corp. offered the CIA up to $1,000,000 to help block the elec- tion in Chile of the late Salvador Al- lende, a Marxist. The offer was made 1-7 by John A. McCone, former director of the CIA who had since become a board member and consultant at ITT. The CIA has said that it rejected the offer and that it had no role in the military coup last year in which Allende was killed and his government toppled. Because the offer \vas made by a former CIA director, there has heen speculation that 11 i'tviailkroviviii46;Ivi2, Made a practice Wrrperrormihr t'fa for private companies abroad. It is the CIA position that the practice does not axial, and has not existed for at least a decade. The CIA says there is no evidence that such a practice ever existed, but that it has not been posi- tively ruled out in the agency's earlier years. The CIA maintains that it uses only funds appropriated by Congress. The nature of CIA relationships with individuals and U.S. companies breaks down into three categories: o The CIA maintains a domestic collection division with offices in many cities listed in telephone books under the name of the Central Intelligence Agency. When the agency learns that someone has in concerning a foreign country, it often asks the per- son if he is willing to come in and pass along the information. o The CIA has a kind of operational collaboration, involving persons. who work for U.S. companies but occasion- ally exchange information with CIA officials an a- cooperative basis. (A ?similar relationship exists between- a :number of journaliats and the CIA.) o A couple of hundred CIA agents live abroad and are on the payrolls of U.S. companies while actually gather- ing intelligence. (Some journalists have also been in this category, although the CIA position is that it is stopping the practice of having journalists on its payroll.) "The fact that the Mullen agency. served as a cover for two CIA agents abroad was first reported by CBS net- work correspondent Dan Rather and has been confirmed in detail by News- day. Years ago. the CIA approached . Mullen, now chairman. of the hoard, paying:that it had an' ernc,rg,pcy and ...?. wanted to station an agent in Euroae as art employe of the public relations firm: In what the Mullen firm con- siders a patriotic gesture, it agreed to have the agent work in a one-man of- fice in Amsterdam. The firm contends that it had a leaitimate reed for a pub- lic-relations office in Europe for ex- ample, because the firm has dope the public relations for the Mormon church for years, it handled a European tour by the Mormon Tabernacle Choir. In 1970, the ,CIA contacted the Mullen firm with another emergency, this time in Singapore. The firm RC- Lnowlcdges that it had no legitimate need for a Singapore operation, but that it. nevertheless agreed and opened a one-man office there. The CIA re- in.axim,c1 the firm for all administrative expenses, including. the. agent's "com- se2606N1/28 : CIA-RDP91-00901R000500100002-2 IVASIIIIIGTOII STAR. Approved For Release 2005I112p betAlzillap91*-00901R000 1 11 1,1 ,JA By Martha Angle ? Star-News Staff Writer Former CIA Director ,--T-John A: McCone has ex- pressed surprise and skepti- cism at reports that E. e/Howard Hunt Jr. directed a spying operation on Sen. '-Barry Goldwater in 1964 on orders from his CIA superi- ors. Doubts about the report were also voiced by Rep. 4.-Aucien N. Nedzi D-Mich., chairman of a CIA over- sight committee in Congress ; which last summer conduct- ed exhaustive hearings into ' 1 the agency's possible rela- tionship with political spying in the Watergate case. Agency officials conduct- ed a quick check of their files yesterday, Nedzi said, and came up with "nothing to substantiate this kind of statement." Nedzi said the CIA has promised a com- plete search of its files on Hunt and a further report to him as soon as possible. ? McCone, who headed the - Central Intelligence Agency from November 1961 to April 1965, said in a tele- phone interview yesterday that he had "never heard of any such thing rither direct- ly or indirectly," ACCORDING-to informed sources, Hunt, who is now serving a prison term for his role in the Watergate F' PF11)0 7 CIA fr.,,477P ? h, eer- STAT 00100002-2 0 - ? 1 V Li Li U5 Li I ? break-in and bugging, has told Republican investiga- tors for the special Senate Watergate conunittee that he sent two operatives to GOldwater's Washington headquarters. during the 1964 presidential campaign to "see what was going on." He did so on orders from his CIA superiors, one of whom ? according to at least one published report ? was stationed at the White House, Hunt alleged- ly told committee investiga- tors. S:mate sources said Hunt told them his operatives brought back advance cam- paign schedules, news re- leases and "any other infor- mation they could obtain." , rs", g 1-1 taverc,,, \,/ ii[. ))iJJ j) LI/ Goldwater said yesterday he was informed by uniden- tified persons "either just before or just after the end of the campaign that both the FBI and the CIA had me under surveillance." McCone, now a senior executive in Is Angeles for the International Telephone and Telegraph Corp., insist- ed that the CIA had "abso- lutely no involvement what- soever" in domestic politics during his tenure as direc- tor. He expressed strong doubt that President John- son or anyone on his White House staff could have or- dered the alleged CIA spying on Goldwater. NEDZI said that yester- day's quick search of files did produce evidence that Hunt was on medical leave from the agency during the latter part of 1964 ? both before and after the election campaign. Tha files apparently show Hunt, was hospitalized from Oct. 12 to Oct. 16, and that he was granted leave until Dec. 8. CIA officials as- sured Nedzi that the Hunt file contains materials, such as xrays and medical re- ports, to substantiate that the. leave of absence really was for a medical purpose. Nedzi's subcommittee compiled some 270 pages of testimony from Hunt during ?. a nine-hour period of inter- rogration last June, at a time when Hunt was still under threat of a 35-year prison sentence, and, Nedzi recalls, "appeared to desire to reveal everything:" - The testimony, which has .not been released and is still classified, makes no reference to any political espionage activity in 19-54, Nedzi said, even though Hunt volunteered page after page of narrative reminis- cence about his past career. Hunt was not, however, asked specifically about any domestic spying in the 1964 campaign, Nedzi said. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100002-2 15 OCT 1973. !THE MULTINATIoVRTelq 2005/11/28 : CIA-RP STAT 91-00901R000600100002-2 'A rs'N,707.7 :2-M3211.1-zerf5 CZnco gOT trmo Wa-211c-il z..;" STEVE WEISSMAN San Francisco "We are all favored with ringside seats at the battle of the 20th century, the outcome of which will have greater influence on the lives of our children, and their children, than all the military conflicts of this century put together. "I refer to the growing confrontation between the forces of globalism led by multinational enterprise and the for- tresses of nationalism which have, been strengthened, at least partially, as a response to the growing impact of the multinational corporation." - So declared Charles W. Robinson. the young president of Marcona Corporation, an international mining and transportation firm, at the fifth quadrennial International Industrial Conference (IIC), Which met during the week of September 17 to 21 in San Francisco. Mr. Robinson's prose was overblown, but the sentiments he expressed were standard fare. Sponsored by the Conference Board and the Stanford Research Institute (SRI) and held in the luxury hotels of Nob Hill *and the board rooms of the nearby financial district, the IIC attracted more than 650 senior execu- tives from the biggest banks and industrial firms in seventy countries, along with a rich sprinkling of government and international agency officials. David Rockefeller and Henry Ford, California industrialists David Packard and John McCone, Wall Street investment bankers -George Ball and Peter Peterson led the list of American entrepre- neurs; similar stars.brightened the roster of foreign par- ticipants. ,"We are,. in fact, the architects and operators of the tion, the concept to be floated that a businessman who i6-catieq. `e.stai5liSlyine,n t! m...-our..:rc.:SP:c0ive,'-:homeliirld.t,..",.':,t*S'.. Ack..:W:electe,d . rep t-sentative is sOffiehow. : ev;i1; and ITC -Chairman Edgar' Kaiser told aPd his welcome that his. volde 'should 'not be heard on Matteis .O`f.potity,'" embraced a member of the Eastern "establishment," as complained Walter B. Wriston, chairman of the $30 bil- well?Dr. Jermin M. Gvishiani, deputy chairman of the lion First National City Bank. .But the international industrialists would not be stopped by' the newly protectionist . officials of organized labor, "the canny bureaucrats," or "yesterday's liberals" with "their outworn doctrine of a controlled economy." For they?and not their critics?were the ever disturbing. "agents of change." "The development of the world corporation into a truly multinational organization has produced a group Of managers of many nationalities. whose perceptions of the needs and wants of the human raceknow no boundaries," Wriston explained. "They really believe in one world. They understand with great clarity that the payrolls and jobs furnished by the world corporation exceed profits by a factor of twenty to one. They .know that iliere can be no truly profitable markets where poverty is the rule of life. They arc a group which recognizes no distinction because of color or sex, since they understand with the clarity born of experience that talent is the commodity in shortest supSTAT ply in the world," Wall Street's biggest banker went on Wealth overflowed: the wife of Sony president Akio Morita was relieved of $37,000 worth of jewelry by one unconventional entrepreneur, and the honest thieves in the local tourist traps did almost as well. "The meeting offers an exchange of views, infor- mation about problems, and a place to meet people who might later become business partners," explained Kaiser in an interview with Ralph Craib of the San Francisco Chronicle. "At the very first meeting, I met men from India and learned about their aluminum problems. . . Today, we have a $60 million aluminum and cement op- eration in India." There were no votes, no resolutions? no public com- mitments at the conference--only a Si million market- place of ideas and a unique opportunity to hear the pubik: thoughts and chance conversations of a newly emerging: international ruling class. The theme of this year's 11C Was "Business Enterprise and the Public Interest," which translated into a spirited celebration of the multinational 7corporation?"that most efficient instrument for optirniz- ling the benefits of our finite global resources"?and a "defiant defense against its many critics. Multinational business was "at bay," the multinational businessmen warned. Host countries like Chile were stag- ing "a frontal attack," threatening expropriation and branding the multinationals as -dangerous agents of im- perialism." Home countries like the United States were "nipping at their heels," threatening measures like the Burke-Hartke bill to restrict job-exporting trade and in- vestment?"the most retrogressive piece of legislation since the Smoot-Hawley Tariff." "We have even permitted, without effective contradic- State Committee for Science and' Technology of the USSR Council of Ministers and soil-in-law of Premier Aleksei Kosygin.. The week produced a mix of loose talk, high society and big business. Much like a flock of Midwestern so- ciology professors, the graying executives sat long, sleepy hours hearing panel loads of chosen colleagues read aloud already distributed papers on everything from the control of population gfowth in China?to the control of gasoline prices, in the United States. They also exchanged prac- tical pointers in smaller, less formal round tables, from which the press was .excluded. "The business types r.eally love the round tables," a conference board official told me. "They are basically lonely men. They generally have to guard every word. They can't admit they don't know an answer. . . In the round tables they can let their hair down." In the evenings the participants "and their ladies" supped in formal splendor in the chic restaurants- and elegant homes of America's most cosmopolitan town. Steve Vein, woAr rsprov5cF'orv IrC eptu pye2095/1/WCM-IR16091- ener 1or the tOCI st .Polo Aho, Calif. 1le is editor of the forthcoming The "Frojan Horse: The Straiwe Politics of Foreign Aid (Ranzparts). b0901R000600100002-2 rtnntinuod S TA T1 ILISHIEGTON POST Approved For Release 2005/11/28 : CIA-4R1501101R0 Chain/ors M. Roberts ( .o. 'uDo4rai. ty The lake-over in Chile by a military junta 1101 ClentOnStrilled 11int OW U.S. government in general and the Nixon adminhttration in particular is suffer- ing ?aim a credibility gap. Allegations that. the coup was engineered, or at least encouraged: by Washington through the Central Intelligence Agency are being made around the world. 'Hie iithninistration. while con- ceding that it did have ..?0111c advance tips that the take-over was coming-, de- nies that it had any part in the affair and, specifically-, that the President had heard the reports in time to do anything about them, even if ha had wished to do so. The CIA starts out with several strikes ainnsi it. After all it is well known that the agency did en:ljneer voup the Iimttit ;'.0VCrlinlent of GUateliqda that it had a hand iii Sl\'itg lie 'Sh:111 of Irmils throne in 1952; that.' it tried unsuectesstully to topple Sulzarno's government in Indonesia; that it was central in the fi- asco at the Pay of Pigs; that it has been involved in inirosions IMO COM- 00600100002-2 come to given the record, is 110 cone usinn ? and a ri..eionable doubt abut t any official conclusion of- (IP fered by the government. . Perhaps not directly retitled to Chile that the CIA has learned some lessons hut part of the Nixon bacl.clrop to his or been reined in, it is not very easy to foreign poliJy methods It his on their face, the curreht Cl .\ for surprises, for the quick switch, and (lc:Ill.:11s. Maybe they are true; but just -for secrecy. Dollar devaluation, [be initybe they are not. change in China the "Nixon shocks" to Japan, the mining of Ilai- Mita 11atter of the (IA; phong harbor-- even the switch to it Pru,ident Nixon himself. When you Phase I economic controls here at eOIl LI I Ii recold 1?'' ditt'sellthti-11`4. it home ?all testify to this style of doing makes 'You wonder ithout 1 Ii ic business. 1V1)0 tan guess what he may the 1116? -KcilrletlY-Nix" "ill- have in mind for Latin .-?merieta, where pidgin cz-niclictiite :Kennedy proposed lienry Kissingcc says he wants to insti- strengthening the anti-Castro forces. [cite new policies? hut candidate Nixon, who then was the N'ice President knew about the secret Integrity is perhaps the most pre- liay of Pigs plan and. to protect the cious asset that. a government can prospects of that invasion, he had to have. The sad fact is that in the post- 0 to the ether extreme" and -attack World War It decodes successive ad- the lunnecly proposal as "dangerously ministrations have eaten away at gov. irresponsible," as he himself has writ- ernmental integrity. One has only to ten. In short, he lied to cover the ?per- recall l'resident Roosevelt and the se- it ion, Store recently, as President, Mr. Nixon secretly authorized the undis- cloed bombing of Cambodia while len- ity: the public that the United States was not 1.1clating that country's neu- trality. As to Laos, lie admitted Amen- ii r.Ni.von's recr-mi of loll imoP/onnint only when forced to do so a Senate investigation. In time ty hardly we shoti probably hear of other similar cases 1190' still hidden. encourages one to accept in short. Mr. Nixon's record ofvrecii- protestations of innocence tidily hardly encourages OM! to itecept. proletslittions of innocence in Chile. it rerninclt me of Thurston the Alat=1.einn in Chile."' who used to show ou how empty his It. is not rery easy to sleeves were; he then proceeded to null front themn a amazing assortment accept the currn et CIA of cards, searves and other parapher- - mina o'," his trade. eret Yalta agreements, President El- denials. .1laybe they arc senho\ver's handling of the U-2 affair, In the ,cia:e of the Bay of Pigs .Mr. President :Kennedy's initial covert op- ; ii jltst Muybc NiN071, writing in his -six Crises," eration h s in Indocina and the panoply never questioned the propriety or le- of evasions liy President Johnit?on as they are //(4.... gality of the operation against Cfistro. documenteit in the Pentagon Papers. I tie time Air. Nixon got into the "l 'he covert operation had lobe pro- While flottse, government integrity tected at all costs." he t?.? rote. There is had indeed suffered. nothing in the Nixon record to indicate Somewhere along, the line Mr, Nixon that he has in any way- altered that became entranced with General munist (.11111.1: st,d that It conducted . for years a it.: yet war ii onit oh sIc\i inch il the justification Charles deGaulle's idezu 0 the dent' Ncsotti i rt'ett'ttlit it iii in the Watergitte case fin? tryinr; to "mystique.' of high office, of holding ti, the ; dhow. /intuition head off an FBI investigation of the , aloof from the public, of treating the lug public like -C lid children in a "papa the CI lexictim intiney transitetions wits es- knows best" midiner. lie ? is not the last entially the i_--anu.t. In short, the end first President to init. this t.?. ay; it held ( weir, in lict. oper- 111,1?,. And ..? justifies the means whenever the end dcciii' ho be failing of thuSe chief affecting "national seem.-- cteutik es in particular who have been to (tto ; s !rinds ',v.., quielt,tst to ?i ran thernsek OSiii the are clein. lin! ?ti ;Lk. ? 'ititt hunt! secturit.\ blanket. Ilut as 11(1 th:itI c?tn,?.I I In I' Pre?.,dent Nixon's aversion, to put1 ic I I I Air? Nkon II;Lsit cit it to hit iii 0; :!1{' 1%. ' ty ?I till Ii hi to the Allemle Ii imp w i 1 i it t I iou ittIll illi I" adininkl I SI Ilk'', nodi- 'ii his 1,(`?` . t., h,tori aid ,h,1{.. ?oh. , Hr in the Chilean ;H1,,,ir: S;i1\ .1?11;(.1;!..,. economic help: vet el i(111 .11. III (.11c01.1r:l'aql 1:(11 tala.-"VCr' (IN ti :p A Itmaiy. 'rho American vt.it'atnt Judiing the richt or wrong of who ;,, (li IL I vedILAOPItIVOCITI61k't?44404I20911,112t Li) 00,066 9,60-21;c (I 0 c;111 JC line 11)3 S fAtill iii iI a15: tor the-e ? [WWI' Ill MO IIIheIlVer. but it all to. . t, itether and the only emu:lie-jun one can . NEW YORK TIMES ? 2_0 AUG 1973 Approved For Release 2005/11/28 : CIA-RDP91-00901 000600100002-2 STK STK Letters to the Editor j The Record ? To the Editor: .1 This will refer to the Aug. 8 Op-Ed ? article by Charles Goldman in connec- tion with I.T.T. and Chile. Mr. Goldman refers to the report of the Church Sub- committee on Multinational Corpora- tions of the Senate Committee on Foreign Relations with respect to the activities of the I.T.T. in Chile. He notes that (a) the Subcommittee recognized the validity of I.T.T.'s de- sire to communicate its concern to the United Stales Gre.?ernment over the policies which an Allende Government might follow and, (b) the Subcommit- tee Report does not allege that any- thing illegal had been done by I.T.T. Mr. Goldman further states that "reasonable men may differ regarding the precise steps to bc taken in deal- ing with such a complex problem, but the point remains that those steps were only overtures and that nothing in fact wa.-; ever done." Mr. Goldman's selective references to the Subcommittee's Report may give a misleeding impression of the Subcommittue's eon:los-ions. Nowhere in his article, for example, does Mr. Goldrarin specify the pre- cise. naturo of tho. overtures that were made by I.T.T. executives to officials of the Uhited Stt3tns Governmnt e in connection with Chile in ths; SUMliler on I.T.T. Activities in Chile and fall of 1970. This is not surprisi in light of the content of the overtures. Thus, accordine, to the testimony in the hearings held by thei Subcommit- tee, (a) Mr. Geneen, in July 1970, met with William V. Broe, Chief of the C.I.A.'s Clandestine Services, Western Hemisphere Division in Washington, D. C., and offered to assemble an elec- tion fund for Jorge Alessandri Rod- riguez, the conservative candidate for President and an opponent of Mr. Allende in the Presidential elections' which were scheduled to be held Sept. 4, 1970. Mr. Broe rejected the offer; (b) John McCone, former Director of `? the C.I.A., and in 1370 a Director of I.T.T., testified tliet (i) Mr. Geneen told him in September 1970 that he, Mr. Geneen, was prepared to put up as much as a million dollars in support of any plan that was adopted by the.. United States Government for the put- pose of bringing about a coalition of the oppesition to Allende in the Chilean Congress so as to deprive Allende. of the Presidency and, (ii) that he com- municated Mr. CiOneell's oiler to Henry Kissinl.ze: and Richard Helms, then Di- rector (.:1 the C.I.A. Based ia eel t upon this testimony, as well a; other similar I.T.T. "over-. tures" which emerged in the course of the teetintony, the Subcommittee chided that ". . . is not to be contionod is that the highest officials of the I.T.T. sought to eneaee the C.I.A. in a plan covertly to manipulate the outcome of the Ciiikan Presidential election. In so (kiting the company overstcpped the Iit o acceptable corporate bAior." The Subcornmit- tee ttritnintriti:ity propo..ci legishition which ..as reporteci [lie Senate For- eign Relations Con-imitten and tinsed by Schtite that would ne it for any Lnited Stays citizen to provide or offer to proviLle fund.; for any United St es Gov( rament .6,,.tency for the plirpC,S0 of intnrvoning in or influenning an election for publie of- fice irt a fori:itni country. ,11.pri-t i. r on Corporiqiiint .Vith,tungtott, Aut.t. i, 19/;:i Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100002-2