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June 30, 1973
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3O JUN 1973 Approved For Release 2005/11/28...CIA-RDP9.1-0090 Making Mischief Abroa by Tad ,?..41. czi'T C 0600100004-0 ' tar ?r-Jr?r-:t 4`, ILL 7W11 tte"),1 "il ? -5 The Senate may soon be moving- to break the long- standing shadowy alliance between big American cor- porations and the Central Intelligence Agency and other United States government organs for carrying out covert interventions in the domestic political af- fairs of foPeign countries. As an outcome of hearings held last March by a special Senate subcommittee on the joint involvement of the White louse, the CIA, the -State Department and the International Telephone and Telegraph Company in secret efforts to block the 1970 election of Chile's Socialist President Salvador Allende Gossens, a bill is being introduced this week to declare such alliances illegal and punishable by imprisonment and fines. That US corporations have cooperated. in varying degrees in the past with the CIA and foreign opposi- tion groups to stage revolutions and coups dYtat or to interfere in local elections has been widely suspected for nearly 20 years though it could never be precisely documented. Thus the United Fruit Company was be- lieved to have worked hand in hand with the CIA in organizing the 1954 "rebel" invasion of Guatemala (wl here the .company had important holdings) to oust the leftist President- jacobo Arbenz Guzman. The com- pany's Boston headquarters, as I still vividly recall, was at the time an excellent source for newsmen in fol- lowing almost on an hourly basis the progress of the . . invasion. ? In 1964 a number of US compani?es operating in Brazil were thought to have secretly contributed funds ?with the CIA's knowledg,e ? to the Brazilian?Insti- tute for Democratic Action (IBAD), a civilian rightist group that played an important role in triggering the military revolution against President jo,5o Goulart, a highly incompetent and corrupt leftist. Later that same year the ITI provided funds (as did the US govern- ment) to campaign against Allende in his first but un- successful bid for Chile's presidency. But the first time that Ibis kind of activity could fully be documented and made part of official record was the March hearings. (by the subcomniittee on multi- national corporations of the Senate Conunitteeon Foreign Relations) op, and Chile. A lengthy sub- committee report, issued this. week, describes in detail the contacts between the Nixon administration and FIT during 1(1:(l aimed firstq defeating Allende and., later, at keepi TAT .the Chilean parliament. The central points in the report le swum tesinuoily that ITT offered the CIA $1 million in 1970 for anti- Allende operations, that while the agency rejected the offer it subsequently suggested to the ITT its own plan for creating economic chaos in Chile, and that action against Allende was- studied at least twice by the White.liouse. The- report is the basis for legislation designed to outlaw such private alliances between the US govern- ment and American corporations which is being intro- duced by Senators Church, Symington, Muskie, Case and Percy. The wording of the bill leaves no doubt what the subcommittee had in mind after discovering the ITT's $1 million offer to the CIA. It thus provides that "it is unlawful Thr any citizen or resident of the United .States to offer to make, or to make, a contribu- tion to 'any agency of the United States or officer, em- ployee, or agent of the United States for the purpose of influenting the outcome of an election for public office iii,another country." Another section declares it to be "unlawful for any officer, employee, or agent of the United States 1) to solicit an citizen or resident of the United States to contribute to, or make an expenditure in support of, any candidate or political party, directly or indirectly, for ,the purpose of influencing the out- come of an election for public office in a foreign coun- try, or 2) to. accept a contribution from any citizen or resident, of the United States for such purpose." The attempts to involve the White I-louse and the CIA in the attempts to intervene in Chilean politics have been generally known since jack Anderson, the syndicated columnist, published early in 1972. internal UT documents bearing on the proposed anti-Allende conspiracy. Until the subcommittee investigation, however, the assumption was that 11T was the "ag- .gressive' party and the administration remained passive, virtually ignoring the company's entreaties. hat emerges from the subcommittee':t report and other information from sources close to the investiga- tion is that the Nixon :idministration was profoundly involved in this whole process in 1970 despite official claims of I.j; neutrality in the Chilean elections. Infor- mation developed by the f-3enate investigatoo, thins shows that Chile was the subject of a meeting in Juno 1970 of the top-secret "Forty Commiree" in the While Ilou:o. The "Forty Committee" is the National SeLtti ity Conncil's or:a-,an in charge of studying aral ap- provin,; plans for Covert action alai oad by the CIA and other USinlelliycnce oyencies rriVeld(Fol4Releasei 2005111128 ? CIA-FkDP91-00901R000600100004-0 on t 1)110 u A:1 4,1 IA I THE CHRISTIAN SCIENCL MQIM, Approved For Release 2005/W28u:ncIATRBF,91-uuuu?1K000600100004-0 f' 11 A ? .7-1 ; 0 .4 4 1 -.-1:: 1 4.. .....,., V..4,1 II .1 111 ; ?.;,-,:,i '': ... :i - . OPIC should be reviewed anyway to determine whether it Is in the U.S. taxpayer's interest to guarantee busi- ness Investment abroad. 1tib,Sla11Iial fund offered By Philip W.Mcluus:-.3y Special correspondent of The Christian. Science Monitor Washington A Senate foreign-relations subcom- mittee that investigated International Telephone & Telegraph Company's attempt to manipulate the Chilean Tircsi(lential elections charges that :such activity thrcatens to give all 'multinational corporations a bad -name. If rrr's actions in trying to enlist the Central Intelligence Agency's aid in subverting the elections came to. be -accepted as "normal,' the committee said, "no co.mtry would. wel- :come the presence of multinational corporations.'' The subcommittee chairman, 'Frank Church (D) of Idaho, plans to introduce legislation to mal:e it illegal for U.S. citizens or 'corporations to offer money to a government agenty to interfere in foreign elections, or for the agency to accept. Senator Church said he was slit prii7ed to find there is no law to prevent it liow. ;I Jo mid that, althr.mgh ITT appal-- vntly OM nothing illegal, the "highest 'officials.' of the huge conglomerate :'.'overstepped the line of acceptable !cOrporate behavior." ? Senator Church also scored the CIA 'for its cmnplicity in tic, scheme and .suggeste'd that appropriate corn- hiittees of Cmr,-rc.,ss take a good look at what goes on in the agency. Congress, he said, "knows very little about time CIA." it is sin posed to be overseen by the Senate Armed Services Committr!e and by a select corninit.,.2.. of SiMate pliers, but the select committee has not even met for several ye.ars. Senator Church said tin' next phase 'of his subcommittee's probe ef the multin,iticnals would be a look at the clverseas Private lever tmont Corpo- ration, v.tich guarantee.,; American business invt-tment.3 abroad against expropri:).tion. OPIC guaranteA MT's investment in Chile to the tune 'of about and the coin? panyti.--.0(1 this ss an a r:.nment for the Arneric. Government's getting volved in- 01 saving Irl"s investment hy preventing, the election of kftk.t. . The committee's hearings earlier This year disclosed that in 1970 ITT Offered the CIA a substantial fund to support Dr. Allende's conservative opponent in the election. This was :turned down. : The company then offered Si roil- ion any plan the U.S. Govern- ment might come up with to block the election of Dr. Allende. A high CIA official then initiated a proposal to :create economic chaos in Chile by tich means as having banks delay loans, putting pressure on shaky savings and loan companies in the country, and withdrawing technical aid. The company rejected this as unworkable. The negotiations between ITT and: the CIA were carried out in part by John McCone, a director of the com-t----- pany who once headed the CIA. After extensive- negotiations, the scheme never was adopted by either the company or the American Govern- ment. Senator Church, in scoring the T'I" s role, made a point of noting that other U.S. companies in Chile and international ba ribs that were ap- proached about participating in the scheme declined to become involved. 1.Vhile the ,(_lnate committee has finished its probe of ITP, the com- pany's troubles in Washington inay not be entirely over. Documents di,a l- ing with the consent decree that gave ITT ownership of Hartford hire z'utee Company v. bile requiring- it to divest other operations have. been turned over to Arc.iilbald Cox, special prosecutor in the Watergate ease, for inquiry into pos:-ihie connection be- tween campaign donations and the i.vernment action. Sailor Allende Go.,,:?,ApPreivFoir Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 1,ns indicated previousiy he Approved For RelefteRift616fVFO'?'FIA-RDP91-009 2 2 JUN 197a r, -117) - ? - ' 71--li -1 A c. -r-bc---, --r-A-3 li? an,4?tl'iti-.17iTi:.:10 1 -.I. rir ral 111) 1 A IL IA .!? By Lauretwe Stern Washington PJ 01.01 WriO:r The. International Tele- phone and Telegraph Co. 'overstepped- the lines of ac- ceptable corporate behavior" in 'seeking covert. Central inH telligence Agency intervention 1 in Chile's 1970 presidential; election. So conducted the Senate Foreign lielations Subcom- mittee.: on 'Multinational Cor- porations ill a report yester_i interest grounds but d? on IT'f's unsuccessful ' I were expunged at the insist- div- epee of .subcommittee mem- campaign to lidoelc the ele ction ljet.s. Chile?" the report asked. of Marxist. Salvador Allende. On the quest ion of CIA The subcommittee heard ,Itibcorrimittce c ha i I'm an complicity in the efforts to testimony tbat the Forty Com- ' Frank. Church (D-idaho) said, prevent Allende's election, the trittec decided against any sig. report tail "it was not in the nificant intervention prior to however, that 1.11c1) was noth- best interest or the U.S. busi.- Allende's first eleeti cm on Sep- . ing illegal in ITT's offer of StIi 'less community for the CIA tomber 4, 170. Alter the mi- million to the CIA to finance to attempt to use a U.S. carp? imi victory, the. seidor opera,, Allende's opposition in 1070. ration 1 0 influence the politit tions group met again but goy- Church nonetheless said he cal. sitthition in Chile?' ? ernnient witnesses were un- This? 'criticism stemmedviiillini-g, to SD.y witat was de - was "Very-.1111/(qf'dititIll"be..d" by from testimony that the CIA's eided at the meeting, the conduct. both of ITT -ttnid chief eltuidestine officer for The ineetimg was followed, the CIA in Chile. Western Hemisithere, opera- however, by the CIA's iirst The report was accompaniecil---tions, William V. tift.oe, pro- overture to III".1' for help in by proposed legislation wit) I'll Posed t hat 1`17.17 rich) in carry- economic sabotage action de- would make it a .Cinle ini: an Inc out a progralic of economic qhfned to weaken . Allende' American citizen or resident ts.i iii,c,,c. in .1 lifi) 'ntcertdcd to chances for WilltliW; the Cou- to offer money to U.S. tigen- Y. ettl:eii Allende's political Pt)- eressional run-off the follow- eics in order to influence the sition ' in t It c Congressional inc October. The doublo hal-- outcome of It foreif:fm election, , run-off election. toting was noces:iary bennse Solicitation of such contrib. . ITT officials testified that of Allendc's failure to win a utitnis by-govermnent offh?ials , they declined toparticipate in nittiority in tho earlier populm' would also Leconte a crime un- the CIA plftu which called for election. der the pt.efoosed law. aptiliert ion of crecht pressures Tile subcommittee s4lict that In tile coutfse of the PET- tigairut the Chilean eonomy the resord of its hearings Chilean affair in I.O'l) the ('or- Withdrawal of technical "calls into..question the Ad.. poration's hoard ciciirman, lia-ministration's slated policy ' assistance. roll S. Colleen 01 fercd the ' ITIC,) interest it) the. case that it t'.'.*:S Winill1; ti .1.k.*.e. with CIA SI million to iniMenee i.t as to prevent nationalization 1 3 .`,C01111111.11My of diversity in Ow outcome of the ein.ctioo, in or its, Chilean telephone com- Latin America. I IC S 1.1 ..: . ChilC`. The oiler was also PanY 'holdint,s or at least ti.i' \t ...'Ii used that deftcription in , made by Colleen throun John sv.fectin the terms of compen- his 1971 foreign policy report tf' Mc Cone, It former director of sation. The corporation anti to Co:cafes?. . thee Cl -\., wino was .`,41,1'vi1r), in the Chilean goernment were I-tince the Fo1e15:11. Bolation)i ' the dual role of CIA consult- negotialing on compensation Commtitee has no jinisaliction ant and l'i I director when he terms NVIR'n -ITT'S CleiWir-S: overthe CIA, the report ? interceded in tile a cse. with the CIA were made pub- c;.11,04rfor It re6r.".' by ?tiric zip- Church said that his staff lie hY columnist. Jad: Antler- prol..iriale cony,ressional con:- :. considered the question of son in Ttlarch, lfi'12. Chile 1 mittees" of. the :natio:az:num winither tho crime of hrlery brokti off the tail?,s, ?. l? ard condoci of CIA clamlii.i- had been committed in the Tile report raised---lnit didl tine epertiions. The At f,e/sfi utinaini of thy Ii' l'-l'IA deal- not afiswer---a ifccies to' cillt-s-; s,-,1-vIces 1-,11a ,..,1,,;,cc,iletionii Ill f.,: 11.0. c4, Ii.1 ',iv rc It?,.H, ,i:oW i.h, r(Th_.! of II: .7\;t- coilr:Ii;.;,..,.?,.; it I 1 CIA v,?:!:. no 1,:,. is h,r 1151, tilt! :It'- I ikw,ii S-?:,-,11'11-: (ii; cut- 1 1..i.::!It if c.ipensWiiii:. lei, i.oi it lion. Tho report, he i aid, is be. 'Toil:. tailonatiee? in the 1'1'1' ,cormitutee,: ino,f)i iimiied to ing fori,tfarded to Ilifory E. Pe- ariiiir. isinsfe as nib ocatci. mid pifotcc- terson i o , ncy corieaal in char tif TM' V?1ilY Colooiittre, !tors of the agency's activities. : Asssini, :\ it,,,- uf Approved For FketiOadi20d5/11/26Y. CIA-RDP91-00901R000600100004-0 ti,i,ii.):liartnictics criminal Di- Acvniir Iiiiiiry .', et' vision. tile senior i\SC ifroup which . . cetfiefsvii cove; i operations. t?ncil ,71 1! .11 /0 ;t234:JVC, 1R000600100004-0 SIA "As you know. the Justice :those initially proposed by Department ii,,, a tower of ? ! ITT to CIA and later recom- strength these days, "Church 1 ! :mended by CIA to ITT. Eentarked. "Did the members of the The report of the ITT inves- tigation Wati mild in language, _Forty Committee adequately rellecti.nii; disputes within the , consider the possibility that:, subcommittee over lico,V IlL-17 04 ? Once haying launched the US. to censure the CIA and Mc. down the road of covert. inter- Cone for their role in the case.. Earlier. drafts of the report vention, other, more direct, were said to contain stiff criti- measures might have become cism of McCone on conic necessary to insure the de- sired result: stopping Allende front becoming President of WASHINGTON POST Approved For Release 2001/111 q?/3RDP91-00901R000600100004-0 Lack of Probe Of ITT-CIA Questioned Rep. Charles Rangel has asked Attorney General Rich- ard G. Kleindienst why there has been no grand jury in- vestigation of reports that In- ternational Telephone and Telegraph officials offered money to the Central Intelli- gence Agency to interfere hr Chilean elections. _ Rangel said the alleged of- ;ler of S1 million to the CIA to intercede in the 1970 Chilean elections could violate federal bribery statues. '? ITT's majority shares of the Chilean telephone company were nationalized following , the election of President Sal-1 vadore Allende. The New York Democrat noted testimony last month before the Senate subcommit- ( tee on multinational corpora- tions by John A. MeCone, a di- rector of ITT, that in Septem- ber 1970 he met separately: with Dr. Henry Kissinger and CIA director Richard Helms. L'' "According to his own testi- 'money,? Rangel said. "McCone told' both men' that he had been authorized by Harold S. Geneen, chairman of the board df ITT. to offer Si mil- , lion to the U.S. government to be used in support of any gov- ernment plan to prevent the election of Dr. Salvador? Al- lende as president of Chile." Rangel said it is a federal offense for any person to try to influence an official act by promising a federal public of- ficial that something of value will be given to another per- son or entity. Rangel made the request to Kleindienst in a letter 10 days ago.. The Justice Department has not yet acknowledged the dotter, he said. Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 .27 WASHINGTON POST Approved For Release 2LIQ15/MAT819113A-RDP91-009 01R000600100004-0 STAT ITT Was a Very Good Year...Dila Beard, CIA, Chile ? - A Commentary By Nicholas von Hoffman - KANSAS CITY, Mo.?The private detectives had kept out all those with no title to be there: the Avis girls, in their red blazers, had ushered everyone to their seats in the meeting room of this strangely chosen, second-rate hotel, and now the hired Godslinger. from . St. John's Methodist Church was making the invoca- tional praeludium to this exercise in corporate democracy. "We should recognize that there are eternal values," be informed the 200. to 300 people in the room, and as he did so Harold S. Geneen, the chairman and chief executive officer of ITT, composed his sharp face into an expression verging on that of reverence. "We .believe we are men of good will," the clergyman. continued, and Francis J. Dunleavy, the president and Chief operating officer, the 12 senior vice presidents and the 41 just plain vice presidents, give or take a few absentees, seemed to be reassuring their Maker that they did indeed- have a triple A spiritual Dun and Bradstreet. .The fifty-third annual ITT stockholders meeting then ? got under way with a lady in red hotpants complaining :that she had been mistreated at an ITT-owned Shera- ton. Geneen told her she should, bring that up later, but she replied that "for $800,000 a year you can put up with me." "I want a raise," he retorted, and then began his annual State of the Corporation Message, but you're mistaken if you think he expressed any contrition for Dita Beard and her shredding machine, neither of which were present, or Chile or the CIA. No, for ITT 1972 was a "realty" good year and the italics are his. Geneen has a message for those of us who think it was naughty of him to risk precipitating a civil war in somebody else's country to save his chintzy tele- phone company: It is that we, like him, are the bene- ficiaries of ITT's imperialism: "If we in the United States want to drive to work in the 300-horsep0wer, 17-foot car, that we consider a - normal standard, and yet compete across the globe with an industrious worker who counts himself lucky to own a small car or bicycle to get to the factory, then it is at least time that we learned to 'bury'- our differences?business, labor, government and the con- sumer alike?and be smart enough to at least 'work together' it is worth emphasizing that the United States' stake in international investment and produc- tion is now (italics his) far more important than any possible profit from the export of merchandise. In 1972, for example, gross income from United States investment abroad came to $10.4 billion positive while the United States merchandise balance with other co came to OA billion negative." C Geneen's peculiar use of quotation marks aside, what the man was actually saying is, "listen! you moralistic numbskulls. you self-righteous pests. we're now getting to be in the position of pre-Mrld War I England. We're all living off these imperialist inve:2tments, abroad, so shut up, and join the cartel." Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 There were a few present to reproach him, but this wasn't a Senate committee meeting: inquiring into rrrs anti-antitrust dipsydoodles. This was Geneen's turf and he could handle all comers. When one proxy bolder challenged what ex-CIA Director and current ITT board member John McCone had tried to pull off In Chile, the chairman and chief executive officer replied, "I think we did right. I'm just sorry we were unable to persuade our government to take a stronger. position." When be got hit again on the subject, this time from a Chilean clergyman, Hal told him, "You are a bishop. . and I believe that you are sincere in what you are saying," and then he went on to complain that if the - government could drop $163 billion in Vietnam fighting Commies, he didn't understand why it couldn't spend a little in South America. When another skeptic with a single-share proxy from a Ralph Nader group wanted a yes or no answer to a question involving an alleged conflict-of-interest situa- tion with Felix Rohatyn, the ITT board member from Lazard Freres, Geneen said, "Ah, grow up." While this colloquy was taking place Ned Garrity,7* ITrs senior vice president for public affairs, was being affable and explaining that the only reason the Nixon administration had divorce Hartford Insurance from the big momma conglomerate was that they'd found out Geneen was a Humphrey -,cupporter in '68. But the most telling blows were struck by Red Hot- pants, who wanted to put John Connally on the all- white, all-male board because it lacked a good-looking man. She got Geneen. to admit, that not only was he not active in any charity whatsoever, but that last year this company with 400,000 employees in 90 countries and revenues of 88.6 billion dollars had contributed .00035,per cent of its U.S. pre-tax income to philan- thropy. Geneen, who has learned that power is more im- portant than public relations, commented, "I think we've' been on the low side." Profits should be up again this year anyway, and, as red pants says, "Harold, nobody but you and I can run this company." 0) 1973. The Washington Post/King Features Syndicate untries MAN EVENTS MAY 1973 STAT 5 lienAtlAvtAIMPI-CKPrieiaSZ 2005/11/28 : CIA-RDP91-009 g r N;, '7) r ir - I n 45'11' 01R000600100004-0 S Cji "foreign" interest but a corporate citi- By M. STANTON EVANS zen of Chile, providing a needed ser- Of all the silly crusades being pro- vice, employing almost 6,000 Chilean na mated these days by American liberals tionals and paying heavy taxes. It had ?and there are plenty of them?the cur- been in business there for 45 years, over- rent vendetta against the International fulfilling contractual obligations, in- Telephone and Telegraph Corp. is per- creasing the number of telephones by 900 haps the silliest, per cent and providing the kind of capital outlay that underdeveloped nations re- quire if they are ever to become devel- oped. ITT's holdings in the Chile Tele- phone Co. were worth S153 million, with a remaining 30 per cent of the share be- ing held by Chilean interests.(Under an agreement reached between ITT and the pre inns government this figure was schedulad to rise to 49 per cent.) The latest enormity charged to ITT is that it tried to interfere in the 1970 pro- ceedings which resulted in the selection of Salvador Allende as president of Chile. On the liberal argument, echoing Allemde's own, ITT was guilty of meddling in the affairs of a foreign na- tion, hindering the democratic process and exporting American "imperialism" to the South. Revelation of ITT's concern to head off Allende occurred a year ago when columnist Jack Anderson latched :onto company memoranda on the subject, documents Allende's government there- after published in full as a major ex- pose' of North American gall. In recent weeks Sen. Frank Church (D.-Idaho) has seen fit to revive the matter in a series of publicized congressional hear- ings?replete with confirmation by for- (--mer CIA Director John McCone, now with ITT, that he had made an offer of $1 million in corporate funds to mo- bilize resistance to Allende. To the liberal mind these various charges and admissions are proof con- clusive that ITT has committed irreme- diable sin?a laboratory specimen of what is wronn with multinational corpora- tions, U.S. dealings in Latin Amei ica, and allaged interlocks between the American government and corporate big business. Careful inspection of the ITT merno:-anda and of the factual record on Allende, however, provides an alternate reading. 'Ileac' documents show that rrr tied a clear-eyed view of what wrs liar.reardng iii Chile, excellent ren- Sen i. amunt resistence to Allende, anA i 'roper grasp of American for- cira eticy weakness. Its mejor fail- in not excessire interlock with oflicial Washington, hut far too little. Fact one in the n was not, from a Ch Fact two is that Salvador Allende, himself a Marxist and backed to the hilt by the Communist global enterprise, had made it plain that he would nationalize important features of the Chilean econ- orny--including, in his zeal to control communications, not merely the phone company but the ? only vigorous opposi- tion newspapers. , 45'7..',....!?7 de`...'-' - . in tr7".:4- C.e..'rz.5.--, '': ' teaa. kewee. IJ -U ? ..a.::, 1/4: -.1 crIAT 1' LI The ITT memoranda which Allende himself has published as major dis- closures of fact are laden with charges that his selection was tantamount to a Communist power-play, backed by Fi- del Castro and the SovietEmbassy, and that his accession would mean the death of freedom in Chile, suppression of dis- sent and the outright theft of property owned by the shareholders of Chiltelco. Fact three is that Allende was not a popularly chosen president nor?as sug- gested by "freely elected" one at the time of ITT's involvement. He had secured a 36 per cent plurality in a three- man race and when these memoranda were being exchanged had not been elected president. That procedure rested with the Chilean Congress which could in theory at least have favored any one of the contestants. Allende's shard of the vote was smaller than that he received in 1964 against Christian Democrat Eduardo Frei, and in another two-man race with Frei he would almost certainly have lost. The memoranda dwell on the possibility of securing such an election, though Alt teir9iNfis840Altiileas6 ktr5tili2 :ICPPROP94 4009Crt R000600100004-0 to this effect were rejected by the man- agement of ITT. It is also important to note that steps concretely proposed by ITT subordi- nates were geared to keeping some hope of freedom alive in Chile, particularly freedom of the press. Thus a September 1970 memo recounts in detail the strug- gles of the anti-Communist Mercurio papers, a midnight visit by the Allende representatives threatening them with expropriation and the financial woes the paper had experienced in recent months. The memorandum concludes with this series of suggested actions by ITT: "1. We and other U.S. firms in Chile pump some advertising into Mercurio. (This has been started.) "2. We help with getting some propa- gandists working again on radio and. television. There are about 20 people that the Matte and Edwards groups were supporting and that we should make certain they are revived. Allende noa. controls two of the three TV stations in Santiago and has launched an intensw radio campaign. "3. Assist in support of a 'family re- location' counter in Mendoza or Baires for wives and children of key persons in- volved in the fight. This will involve about 50 families for a period of a month to six weeks, maybe two months. "4. Bring what pressure we can on USIS in Washington to instruct the San- tiago USIS to start moving the Mercurio editorials around Latin America. lja until I left they were under orders not to move anything out of this country. "5. Urge the key European press. through our contacts there, to get the story of what disaster could fall on Chile if Allende LC: Co. win this country." Here, indeed, are nefarious proposals: A business firm with a substantial threat- ened investment in Chile actually tryina to shore up the remnants of an indepen- dent press against a confessing Marx- ist! On the thesis of the liberals, IT F should not have attempted to help the Mercurio papers nor lifted a finger to prevent the theft of its own property. continued nal 1 J. t11.1 v - - 3ien1973 Approved For Release 2005/11/28 : CIA-RDP91-00901 New broom at CIA By Benjamin Welles - ? In his first two months as head of the CIA, Jarnes Ft. Schlesinger has fired LOGO employ- ees ? thereby creating gloom and apprehen- sion In a federal fief long sheltered by secrecy, by "old school tie" friendships and by the benign neglect of elderly congressional leaders. Mr. Schlesinger, one of President Nixon's favorite "managers," has summarily ? even ruthlessly ? dropped several ranking offi- cials and has shipped others overseas. He has begun reshuffling Ins organizational furni- ture and taking a cue from his predecessor, toRichard M. Helms, he has begun divulging .? his plans in background chats with key'?his deputy, William Colby, an ex-CIA "pacifi- newsmen. cation" chief in Vietnam. The question arises: how much is real The most controversial of Mr. Schle- how much cosmetics? Is the dust being swept singer's moves ? one widely misinterpreted out from under ? or merely under ? the in the press ? has been the creation of an rugs? Some close observers suspect Mr. "intelligence community staff." it is headed Schlesinger of shaking his broom publicly to by Lt. Gen. Lewis Allen, a veteran . create a favorable image of the "President's missile-cum-spy-satellite expert, with Maj. - man," brushing away the cobwebs, makingL-Gen. Daniel Graham, U.S.A.F., a bright the sluggish CIA "responsive" to the white young analyst from the Defence Intelligence Agency as his deputy. The ICE', is modeled on .House. the NIPE (National Intelligence Program ' Some of Mr. Schlesinger's changes to date have had their lighter aspects. CIA se.cretar- Evaluation) staff created by director McCone les no longer mysteriously answer incoming in 1982. il-l- eans with "76-76" Fome other anonymous On Schlesinger's order the ICS will co extension; they now proudly proclaim he "Mr. prise about CO: half CIA and t rest JoneS's office" or "Soviet economic affairs" representing agencies involved in military intelligence ? DIA, the code-ci aching Na- etc. tonal Security Agency, the National Recon- In a bid to end the aura of "clandestinity" that often irked the press, public and Con- naissance Office, the State Department in- gress, Mr. Schlesinger has suggested opening telligence arm. It is authorized to criticize CIA dining rooms to wives ? only to be evaluation methods used by CIA, DIA or any warned that an Arab terrorist might sneak in other agency, but its main role will be disguised as a suburban housewife. CIA ensuring that there are no "gaps" in collect- officers, who have long used state depart- inn' intelligence arc",d the world, whether by satellites, spies or eavesdropping. ment "cover," now must forgo the (lining, rooms or don visitor's identity badges so as A recent article by Graham in the current not to "blow" their cover. Army magazine has raised the specter of a In his first talks with newsmen Mr. "mililary" takeover of "civilian" in- Schlesinger has promised to cut beck on such telligence evaluation. Allegedly this would costly ? and dismally ineffective CIA permit the Pentagon to "tailor" the pseudo-secret activities as running 50,000 Ci Chinese threat to its ever trowin;,., budget. anti-Communist men:is in La0S. "Danny's suddenly a controversial figure pit Ile forecasts a technological capa- ? but they're re:ding him wrong," said a bility for CIA ? presumably through new loiig-time analyst. "He's not plotting to "real time" spy satellites being developed wrench estimates from the co,n tint will transmit copious onctoove pine and Qirile the contrary: he wants the roilitary to electronic data collected over the :Soviet i;e profeeeional as the Cl!,. In ?nee worns, Union, China or other ''targets'' in- his target is the poor grade of 1-unitary stantan;:onsly to I z th staticin for fast aimlysis done separatclv in the .Army, an ls re. (sit 1\ F,13CW kind Ati FOIVU. That's what he wants to Ice - lb their data in p7tel:,-..t which specially eliminate." %mined air crews recovc-r in mid-air ever the Pac Inn, than fly to Ini?.?cstrir far processing and ?ono,,o; ?noen for ?a time- ccsisiiiiilfl,, 0. to c;i,-cc.tatt lii: I fla1tiflCC of 1:nown elec- tronic pit t-lin,r into lit.r Kremlin's that corcarciii p-aol as it is ? i-Jib its v.ync! ri:,c)rjr Trpse 2005/11/28 : CIA-RDP91-00901R000600100004-0 Inu;115-,t con ,.1 11rr wituniy, lo ;?arty 1i1 W;LeiTi Ny. I II.en nit II Y?111,/ R000600100004-0 SIAI Mr. Schlesinger has promised visitors to step up CIA activities against narcotics traffickers and political terrorists. But Helms set up a narcotics division in CIA three years ago; that is hardly new, and CIA counterespionage experts have long been tracking political terrorism ? especially in the Middle East.- A A , . As part of the new "face-lift" Mr. Schle- singer has scrapped the deliberately mis- leading name "directorate of plans" for the CIA's clandestine services: espionage, coun- ter-espionage, covert political action around the world. Together with the former adminis- trative "support" directorate, it is now all lumped together as "operations," and he will run it very much from his own office through It is early, still, to say whether ti Schlesinger reforms will significantly in prove the national intelligence "product," lc which the taxpayers hire 125,000 employee and pay $5 billion yearly. Some key analyst so far doubt it. "There's a mood of beim; dissatisfied wit previous work which comes, I guess, from t1- White House," said one source. "It's not vet well-informed opinion, but it's certainly pe vasive. We're getting motion, if not niece sarily progress." Mr. Welles, for many )?ears on the staff of the New York: Times, is now an independent commentator on wiSTATs on in Washington. NEW YORK, N.Y. POST 40 4 ion roveavrommease 2005/11/28 : CIA-RDP91-0090 EVENING ? 623,245 WEEKEND ? 354,797 6'1 he Litelt10 Scene JOHN BARKHAM THE SECRET TEAM: The CIA and Its Allies in Control of The U.S. and the -Worldr.--Br Col.- L. Fletcher Prouty (USAF Ret.) Prentice-Hall. 496 pp. $8.95. ? If this long, densely paclud book is carefully read In Washington it should blow the roof off the CIA's head- quarters building. It reveals more of the CIA's history, ?? its clandestine operations and adroit cover-up tactics than. any previously puolished ? book on the subject. chambers of the agency," In all probability, however, recalls Prouty. "It is fantas- Prouty reminds us, have had ? It will not create the sensa- tic to find people like Daniel to live with the CIA and ? tion it should, partly because ElLsberg, being charged With watch it grow from a simple of the stolidity and repeti- leaking official secrets be- intelligence-gathering agen- tiou.sness of its prose, partly cause a label on the piece of cy into a complex giant because most Americans are paper said 'Top Secret' when whose reach extends around the globe. "A parade of just too shock-saturated to the substance was patently of State have react as they ought. Foreign 4'ThntrueEl no more than a: Secretaries seen their power and influ- embassies, on the other hand, will doubtless study its pages with profit. Why, you ask, has Colonel Prouty been permitted to lift the lid on the inner weri;inp;s .,of the CIA? Because he never belonged to the CIA and was not bound by its oath of : secrecy. As an Air Force officer and former pilot he spent his last nine years of service in the Pentagon as - the official Focal Point Offi- cer through whom all CIA military activities were chan- neled. He was, in his own words, one of the "behind-the-scencs, faceless, nameless, ubiquitous , experts who brief Presidents and Secretaries of State." (Henry Kissinger at ono tim-?, was another.) "In the CIA the briefing officer special- ized in the high art of toll- level indoctrination." One of the many shocks delivered in the book is i:s ? disclosure of deliberate fab- rications disseminated by th.: CIA, usually through leaks These are called "covers' because they are designcl conceal the truth. .The late Allen Dulles, firs-, CIA head, was an expert planting ''covers'' at lancil ? for prominent writers. would discuss openly th: same subjeels that 1R000600100004-0 STAT cover story. Except for the ence dwindle and be eclipsed fact that they were official almost to extinction by the lies, these papers had no CIA . . . Like a terrible, basis in fact." haunting, terrorizing night' Dulles, adds Prouty, would mare, the sinister machine tell similar stories \Vhiell pervades every aspect of would thereafter appear in government today." print. They were "cleverly 'untrue." Even Defense Secretary Robert McNamara when he headed the Pentagon re- ceived skilled briefing "treat- ment" on his visits to Viet-y nam. "He would be in the custody of skilled briefers who knew what he should see, whom he should see, and whom he should not fee.: In many cases the messages, relayed from Saigon, osten- sibly written by and for Mc- Namara while he was there, had been sent to Saigon from Washington before he, arrived there." In due course the Secre- tary brought the report back. to ?Vashin.gton and handed it to President johivon. ''It is difficult," adds Prouty ? drily, "not to yield to the urge to play Cod and ma lie everything come out as de- sired." The book- abounds in ev- arnples of Such carefully planned and executed acts of official deviousnesi One is left with impi?ersion that the CIA probably leads the world in sophlsticateil tech. hours before had been d. . niques of overt and covert ells94130011PeCVFiktR6iarSe i6r5/1111128F.vakiRibi`ple9n1N200901R000600100004-0 ApproV.ed For CIA.'Frame ?:????%1 t, 71,P N. York 11 rt11.., WASHINGTON, April 18? The Central Intelligence Agency set up a secret base in the Colorado Rockies to train Tibetan guerrillas in mountain warfare in the late nineteen- fifties, when there was an up- rising against Chinese rule in Tibet, a new book discloses. In the book, "The Politics of t/ Lying," David Wise, the author, said that the agency began training Tibetan refugees re- cruited in India in 1938 in a deserted World War II Army 14.6W YORK TIMES 1 9 APR 1973 STAT 2005/11/28 : CIA-RDP91401J01R000600100004-0 ibetans Uoloran, ivew, WYOMING' --ft; ? j,:',DenVet Leac1ville-n; Grand q7;1:,?.:-.1.-s,, ? Junction NtE. rr, er?,:.."?? NtYimEXICO 0 100 Agency's new 846-million head- quarters in Langley, Va., be- cause the incident occurred a week after President Kennedy announced the appointment of ?-?1John A. McCone as the new Director of Central Intelli- gence. Mr. McCone replaced --Allen W. Dulles, whose resignation was accepted after ? the Bay of Pigs incident, Mr. Wise wrote. The dispute between Tibet and China began in the 13th century, Mr. Wise wrote, with China periodically claiming Tibet as part of her territory. Mainland China was taken over by Communist forces led by Mao Tse-tung, in 1949, and in 1950 Chinese troops marched into Tibet. In May, 1951, the Chinese signed an agreement with the Dalai Lama government for the, occupation of Tibet, pledg- ing not to alter the existing political system in Tibet or the powers of the , Dalai Lama. base near Leadville, Colo. The MI Flew York TIrrios/A,ril 19. 1993 operation continued into the Camp reportedly was in early months of the Kennedy - Rockies Administration, he said. 130 miles from A spokesman for the agency city of Colorado Springs. said that there would be no _ .. immediate comment on the re- When a reporter for The' port. New York Times subsequently, Mr. Wise, the former Wash- began a routine inquiry, based' ington bureau chief of The on a brief news-agency dis-, New York Herald Tribune and patch about the incident, the co-author of "The Invisible book said, the office of Robert! Government," a 19(34 book S. McNamara, who was then' about the Central intelligence Seeretaio ? of Defense, tele-; Agency, wrote that the Tibetan I phoned the Washington Bureau, training program apparently: of The Times and asked that ended abruptly in December, ,, the stoi y not be used because: 1961, six months after the Bay of "national security" reasons. ; of Pigs fiasco and a few T The Times acquiesced, Mr.' days after its cover was'almost! Wise wrote, in line with the: blown in an airport near i . general newspaper practice in Colorado Springs. . I:those years of not challenging, ' Delayed by Bus Accident the Government's definition of ; , ? : i "national security." "Ironically, it was the snow l The two top news officials and the mountains ? the l in Washington for The 'limesi very factors that led the C.I.A.! in 19fil, the bureau chief,: to select Colorado for (110 train-1. ljames Reston, and the news ing base ? that almost caused! editor, Wallace Carroll, said the operation to slit face." Mr. i ? wie wrote. A roil, of , yesterday that they did not re- 'libetan trainees wer?e loaded ;call the incident, .Nlr. Reston is: Says that nation and China, the book. said. The secret training operation was hardly a success, Mr. Wise wrote, because the guerrillas "infiltrated into Tibet by the C.I.A. were aitempting to har- ass the Chinese, not to free the. country; in the long run it -is doubtful that they made. very' much- difference. Since 1961 Communist China has tight- ened its grip on Tibet." Tibet, like other areas largely nate- latcd by ethnic minorities, now has the states of an autonomous region within China. "Would the nation's security have been endangered if the! story of the Tibetan operation, had been disclosed in 1981?", the book asked. "In the wake, of the Bay of Pigs, Kennedy: ordered two separate investi-' However, the agreement also gations of the C.I.A., and hc provided for Chinese controlt struggled to take tighter eon-, through the appointment of a trot over the agency's opera-! military and administrative. lions by changing its top lead- committee. ershipel During the mid-nineteen-. "Publication of the story fifties, however, Mr. Wise might have focused public at- wrote, Tibetan guerrillas began tention on a number of im- insurgent warfare anainst thei, P:riant Mr- Wise sag- nested, "including the basic ? Cnincse iLle question of whether tax money Central Intelligence Agency would be used to finance 'concluded that the situation! clandestine intelligence oper- offered an ideal onportunily",:iiti,onsie A second issue, ho for covert United States aid. added, 'was v.-bet:her the agency In March, 1959, the Hahn: hada legal basis for operating Lama was forced to flee over secret training base in the high mountain passes to Initial united states. after a Chinese mortar attack' Wise wrote, that on his palace, Mr, Wise' "disclosure nt,7ht also have led asserted. intelligence officials, ,0 a p-hlic examination of aboard a bus at the Army, ,now a president , later concluded, Mi. Wiee , ,,, ;no ,,r,,ii, soen ?.?ne.e...t cieeenons as vice cam!) for 8 liln-nnie 11.11) if) a! and columnist for ' : wrote, that some of the guer- ., 0 `o.. -': - 1 :?,prings, NV /WIT a ge Air rules NV ho had been traincial in ":"I'':'1. .: ii?:4:i!ent L?5'cr";ower approved the Tibetan opc?ration, nn"irbY ail,fiHil in IllCnini.a(1?1 and r. Carroll is recileitoTrinalensci to: publisher of the Journal and, the C.olorado Rockies bad been guiding tile ?,vhether Po lent Kennedy was Sentinel in Winston-Salem responsible for quietly fly them out of the! : aware of it or approved it, and Force jet was waiting country before dawn. ? 1 N. C. , Dalai Lama to safety. in, wnetner the four 'watchdog' I i i J But corning down the: moun-1 fense correspondent for The Tiber after the escape, Mr. Wise' Open warfare broke out committees of the Congress had bad any,eledge of what wasSTAT Jack Raymond, who Was de - bus skidded off thc, mad h., the! Times in 1961, said yesterday; ,rrenported, rind ttionsimds ot-fi ..oetans were killed and the: 4,40illg, 0:1 : n Colorado." tain," Mr, Wise wrote, the snow. As a result of the delay : that .1 do remember at the time i Dalai Lama's g,avernment V, and I (IOW t recall what r 1 0 ! i; dissolved- by the Chinese. Iii-, sane- - daylight when the Tibetans or-' . rived at the field." ' it " I ? tu'ary to the Dalai Lama also Once there, the book went? ? on overzealous military secur Mr. It Nyho is now' ri_.i_ercffd_the pr ll eStiVe between: , ?H ity offieiais berried idle air- associated with the Aspen In. Point, but not until at leaste New, Y?1k, added in a tele- one of them saw the Tibetans, Nolle inlerview? "Ini inclined to think that I didn't have board the jet. Complaints to the 10", enough information, about it to sheriff were made about the ":,ri,te ii stol",:? .have no "1"- manhandlinc, of the civilians, 6"-i`e rec"i'cimli of being and a few newspaper articles wy off the story by any- describing the bizarre encoun- ter were published in Colorado 'Nerve-Racking Moments' Springs and Denver. But, Mr: In his tool "v1 oppose then. 1,:1;e arta irlift of the hind that lie- fence Secrete; y Elliot Richard- , t a.11.. e a event that co7-npletely eet off: ? ""''''''' 01.. that if ; Cembeilia fv:t fn ? ein.trel it nny ..?: nn the ,Sineh ;.). 1,, !... " 71Tr*ir, 1,7? d dering them back again. Sai- gon has been given the tools to defend South Vietnam. From now en, it's up to anion.'' . To undertaXe to guarantee a truce that settles none of the issues over .i.vhich the Viet- have spoiled for 20 years is simply to embroil our- selves in a ceaseless fire in- definitely. Q.-YOU'VE JUST voted for an amendment which prohibits reconstruction aid for North Viet Nam. A.-I'm absolutely opposed to an American program for reconstruction of North Viet Yarn. If Hanoi needs help to rebuild, she should Lick to her wa-..time allies, Russia and China. 1.1;c re are only two ways you can I,.;ek at our pay: 52.5 biIIioa to North Viet Nam, eitir ;:s repa- rrOion, whij: is the most ef the world v.-111 look at it, or as ialuea l mi to keep t he truce. Ent whether I it's r:nr.-om to :Cl) the imee or reparations for bombing, A.-I thin:: that if we had a in-ttietna of cominea sena; at the top in till:, nave; ninent, the ?: ;Pre \,iield ray at this rint: "We:to done every[hini; ; that er.`,11 done in eqeirepinn neigher fit walling my concept of peace with honor. ? Q.-IN 1970 THE Senate passed, 53 to 37, the Cooper- Church amendment to cut- off funds for the bombing. What is the situation on that! A.-Sen. [Clifford] Case [R., N.J.] and I have an amend- ment pending . which' We will bring up when the time is right that would prohibit the return of American forces into battle anywhere. in Indochina, without the prior consent of Congress. The bombing of Cambodia woUld be included. Q. - YOUR subcommittee recently I; old hearings on alleged interference in the pod- ities of Chile to prevent Solvador Allende from coming to power. At the of the Lenr ups, you called the I. T. T.-CIA relationship in the affair "Mee:inn:ins." I Inlerno- tienal Telephone. and Tele. graph Corp. and Central 1015:1- 1 inence ...v;ency.), Who bc..-,.?,an ; that relatienehip, and was this . Sculh N'iet Nam to cLaent it- ; ever resol% NI in tile hearines' ;- ?:...4.1*4-A".?-Rrt.40911:1-161")."4641:6140' 0160-01 00004-0 ; ?.;.n ns :nen ; .. ! and I have no intention of or- ' Approved For Release 2005/11/28 : CIA-RDP91-0 LEWISTON, IDAHO TRIBUIpR. 8 1973' - 21,770 S - 22,477 EIRIIIIMIUMMIUMffitUalarmlifnimirmin(utnimu llllll lllllllllllll lllllllll ...... _ 0901R000600100004-0 STAT ITT, The Ca And The Church Committee Testimony so far has thoroughly confused the initials ITT and CIA, to the point that members of the -SL----371-7?Irabcomm1ttee investigating plotting against Chile are wondering about possible perjury. : William V. Broe, a high Central *Intelligence Agency officer, told Senators under oath that the president of the International Telephone & Telegraph Corp. offered the CIA a large sum to try to block the election of President Allende of Chile. Earlier an ITT vice president had testified . that the money was offered to finance housing and technical assistance in Chile. \111 This is no doubt the first time anyone ever card of using the CIA as an economic development agency, and it may be the last, if\ the Senators can determine who was telling the truth. . \ But there is further confusion. From the testisiTiony so far, it is not clear who sponsored a proposal for American corporations in Chile to create economic ,c h a (.1s against Dr. Allende's Marxist ? . . movement. Subcommittee Chairman Churc of Idaho thought Mr. Broe proposed it for the CIA: Senator Case of New jersey ),1 thought the initiative may have come from ITT. But the two agreed that Mr. Broe acted with the approval of his superiors in the CIA in discussing such things with 111'. The immediate superior was CIA Director , --- Richard Helms. A former superior was. John ., 8---- J. McCone who by this time was an ITT vice I president, and he told the Senators he had q carried an offer of $1,000,000 to Mr. Helms1 and a White House assistant for use inl heading off Dr. Allende's election. Witnesses have been insistent that nothing) - came from all the talks and all the money tg be used for intervention in Chile. Maybe not; but we can almost hear Chileans talkirl, now, not of "dollar diplomacy," but of million-dollar diplomacy. As for American, they ought to find the evidence of, dn interlocking directorate between the CIA and ITT a shocking example of corporate arrogance and of a -distortion of puiilie ? - service. ? St. Louis Post-Dispatch ,. . .. . il . . Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Approved For Release 2005/11/28 : CIA-RDP91-00901 STAR 7 APR 1973 MILTON VIORST r-, 0 r, ..? i: ri 7rzi a 1 r, %?-?1 t !7 ,1 LI 'if' g Yea) R apparently is true that, But William Broe, the CIA under the U.S. Code,' it is not operative who was at the con- illegal for a group of collimate ter of this Katzenjammer epi- executives to sit in a Washing- sode, testified that he was act- ton office and conspire, or so- log on the authority of-the CIA licit federal officials to join a director, Richard llelines. And conspiracy, to overthrow the I lel ra:-. has told the subcommit- government of Chile. tee privately that he never acted on policy matters with- out clear White House instruc- tions. But the United States has a legal commitment under the Charter of the Oreranizatic.n of _American States not to inter- fere in the internal affairs of Latin American countries ? and it is clear that the CIA, fired no by ITT, wastrying to do exactly that to keep Salva- dor Allende out of the Chilean presidency. It might be said, of course; ? that in the end no substantive action was taken. But the tes- timony given to Sen. Frank Church's Foreign Relations subcommittee by CIA and ITT officials makes clear that the reason nothing was done 'as that no one could devise a plan that they agreed was likely to So what we are talking about here are plans drawn up with the knowledge and con- sent of the National Security Council, at the least. And though we have no direct in- formation, it would be naive to think that the President didn't . approve, too. ? What makes this story more unsavory than it might be if all . we were proposing was to save the Chileans. from commu- nism, which we once thought had a certain idealism to it, are the recurring themes of money and cronyism. The man who got this proj- work. ? ect energized is John Mc- Cone, paragon of the Ameri- can establishment and former head of CIA, who went to Hen- ry Kissinger and to Helms. MeCone still is carried as a . consultant to the CIA. - Clearly, the United States did not desist from interfer? Once in the Chilean election as a matter of policy. In fact, the policy was quite the contrary. \\lot was lacking, as it turned out, was a feasible means. Having become rather cyni- caIfolks, we Americans might say to ourselves that this was just another ? ho-ho ? of those lovable CIA capers, the kind 'I he Nov Yorker prints funny cartoons about, the kind? that got us the Watergate. Did he make his recommen- dation out of patriotism? Maybe, but it is hard to be- lieve he was not influenced hy his membeesidp on the ITT board and his considerable holdings of stork. In fact, he seems niso to control large holdings in Anaconda Copper. R000600100004-0 S IA I STAT t1 ri t") r, .11 Who could possibly suspect the motives of such a distin- guished establishmentarian? But, let it be said, that if it were anyone else, the ugly words 'cont bet of interest" ? ethical if not legal ? would certainly bespoken. ' Indeed. what is so stunning here is that ITT offered the CIA a substantial sum of mon- ey -- much as it offered the Republican party a huge dona- tion when it had an antitrust prosecution pending at the Justice Department ? to in- tercede to protect its property in Chile. Does the AFL-CIO give money to the Labor Depart- ment to influence trade union regulations? Do the pharma- ceutical manufacturers subsi- dize the FDA to gei. favorable decisions on drugs? It seems to me that the fit- ting response of any self-ee- specting public official, when a corporation execuib,?e walks into -his office waving Si mil- lion to pay for the overthrow of the government of a friendly country, would be, "Sir, get the hell out of here and don't come back." If he allSWCi s by sclarxicliin,t, a meeting to discuss it further, then, v. hatce.ner the ce.acom.., he's playimt the dirty game. And it's just this game that Inainede every small eouney in the world suspi.cions of ns. Certainly, the newest revela- tions will, jtist lfloPlv, intene'Sy everywhere distrust. Jf what westand for. Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Approved For Release 2005/111`28-:"CrAIRD,P914:109 C APR (37,:, CA!?L T.Pr,WAN 1 ,,:-..'4,.9r.,?,?:29 tr: I ...q if f4 I.! Li lJ When the Lext Latin Ameri- can country goes Communist, or elects a Marxist govern- ment, slap this label across it: A PRODUCT OF DT Let it be clear that North American capitalism, espe, daily the multi-national cor poration, is under unprece dented attack in Latin Ameri- rf 1R000600100004-0 SIA r P!1 r t L.' .rirL411.7 . 111 lende as president of Chile. To our government's credit, the offer apparently was reject- ed. No one in Latin America, or the rest of the world for that matter, can he left with any conclusion other than that a giant American corporation was so money-hungry that it ca. was willing to finance ANY From Panama to Argen- tactic to determine and con- tina the cry goes up that trol the government of afloat- "Yankee imperialism" is the -er sovereign nation. source of the miseries of vast And, in case you missed it, millions of Lottnos. as Latin embassies surely did In the foreign ministries of not, E. Howard Hunt, the country after country, I saw i convicted Watergate burglar during a recent tour of Latin and hugger, made an extraor- . America, the complaint is dinarv anneal that the judge be merciful in sentencing him. hunt asked the judge to con- cider his lifetime of patriotic deeds ? like his leadership of the scheme to overtorow the government of Guatemala. that the United States has no foreign policy exce7'. that dic- tated by nervous, greedy corporations trsing to protect their excessive profits. In newspaper offices and on college eampuscs you hoar the fiery cli-itirs the Unit. V Tel McCorie, former CIA 0(1 Stales is so rri:ic,1 ? the ron- dartr.c of the stii!tri quo that she has made foreiyn aid and even the lend',ng ;agencies the tools of a cruel and greedy oiloaiichy that 'suppresses relenCessly the aFT.,ratiurs-; Of die pie. Alas, if thoit'e vooi touch in- clination left for La! in Ameri- cans to doubt roily of these claims, that tea'sierey too.irrci fliving Uncle Sam I lie benefit Of doubt lois bo'el washed away in the oiraordinary Senate heasiT,, the role of International 'Cole- aid Telegropii in Chile. \Viten :sial rot glraue,h all tlio conflict ia[,, tot.; ran. the oTionblioo, tHe rai iao- alizations, you :J4-lftv:ith,ple ',act 0 ot th:. Contra'. rise A?s:,,,- cy tu firoace \V;1'. the ciection cf director and now an ITT board menioer, seems to have (iffei $1 million to the CIA as threo.ilii there were nothing immoral or amoral about it. Ile might have been offering some society matron a Tr:Alien bucks to I.Juiid en And limit. views h!s; clandes- tine CIA op:.:Tations in Guate- mula his g:eateA badge of I onor. 'What do we expect Lltin Americans to think? Is it any wonder that au- metres priests aril bishops would say to mo that capital- ism olfers no hope of meeting the noecIS of Latin AniK?rica? Is it that the 1-erit.. taut c,pisicop.ii to call Ito' the of the rocatii; ion . . to (1;0 Vi or to LICLc"I!'c',V,"' of c;,ui.uiuel A in r Af'41 113 2; a property and resources both when their ownership causes serious harm to the country, and when the unjust accumu- lation of wealth is accom- plished within legal framework"? Father Daniel Lyons, a con- servative Catholic writer, was outraged by what he saw at the 10th annual meeting this year of the Catholic Inter- American Program in Dallas. "Speaker after speaker . kept attacking U.S. compa- nies that have factories in Latin America," Father Ly- seas wrote. "Instead of trying to solve problems arising, from foreign investment, they want to drive it out. Profit is a 'dirty, word' to these idea, logues of the Latin-American DiviAon of our U.S. Dishops Conference." If Father Lyons thinks North American and Latin churchmen are hard on U.S. corporations in LiTtin ea, wait until he sees the Lat- in response to the 111' hear- The simple-minded will wish to exonerate IfT by as- suming that they were driven to clesarote straits v,lien the inr:reoding eleaion of hit 2.,:de made iiihnot certain lire ex- propriation of NT properties. Lut the truth is that the pol- icies of ITT and similar firms over a long period of time drove the Chilean people to elect Allende. The short-sigh!..ed, greedy, i minor al bit:sit-loss operation has lore; 1-(e.'n ooe of t1ie cd States' groat 1,u,c1.:23ti, in Lio ui Amenc;o V,e a=i a Pie will I:1y an inealciii7Thle price in ti cue'; of ilew Cubas Cfl (.o IC) Oft! ? 10 y LL!ir 0:les iLt;., Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 WASHINGTON POST Approved For Release 20%5/Wg81.99A-RDP91-00901 Siephen. S. Rosenfeld, ? lf-ri I I in Chi e: icYn of an End n -Y:VrT 6-1 L ar Bather than just being unnerved by the revelations of IT'1"s misadventurc? in Chile, maybe we oueht to go on to hail the case as the best real proof we've had so far of the end of the cold war. For while the CIA was cvldentl)r- dabbli?g with rrt on the theory that /I Marxist government in Chile might pose some kind of political or strategic disadvantage to the United :iIlates, ITT saw the prospect of an Ailciitle victory for what it was to 1TT: a kick in the wallet. Faithful old cold-warhorse John Me-. Cone, the former iIA director who'd signed on as a director to 1717, may have conceived of ITT's idterept to purchase a million dollars-. wart!i of subversion from :the CIA as an anti- Communist act tracing its line:tn.:4/ to the Berlin Airlift. That's what he told the Senate Forel: n Relation:: multina- tional corporations subcommittee in- vestigating the af"air. But Harold Geneen, president c.f DI', seems to have had no similar illu- sions or divided 1c/illtics. or tin to make the claim that vhat's bad for ITT is had for the country: he went TO CIA as a businessman Nvortied that Al- lende's election Wvoilci hurt his Erin. In 1961: the CIA had nlayed its rit (still in:detailed .puldiciy) in a faceted American effort to help elect Eduardo Frei. Froi's Chid: tian Demo- crats, who won, v. ere then wide?y s?-in as the "last best hope" ft r ?!"., a model of chanee /for all of Latin Amis. ica ---aim orderly reformi---.1 Inne?:1 ec genial both to Anerican poiit; ests as than conrcived -"d toAineri- 'can economic interests as stilt con- ceived. In 1954, howevtc, it sN'PTIS fc-tiir to say in rett-or!g/et, ti 12-eltcd. 1;5-,5 still :IN V."P,S t4) thrtii;?;is decade to coon/. (irst ideac. castia-sei LCki ?1,+. 1 iiy The seemicl. .? ?,,,p?.e.; Tm 1.;, ? : r in .7i ":1 1 ,1 1:5.?!1 H; Fcw would itavr 11(11?, C'111).1 pyro-ived 0 51 I' STAT R000600100004-0 elsewhere has diminished. This may help explain why, when the U.S. VOV- ertament contemplated the election cf. a Chilean Marxist in 1970, some of the old political-strategic juices may have flowed but finally what was clone .i.vit3 demonstrably short of what v,ta?ti needed to heel./ Allende from power. 1)id ITT sons? the implications of the change even before the U.S. government? In 1931, by its own ac- count, ITT offered money to the CIA for the CIA's political put-non-et in Chile. In 1670, ITT offered money to the CIA for its own economic/ pur- poses. In the interval, the corporation perhaps thought, the world haul hen made safe for precisely the -sort of old- fashioned economic imperialitn---cor. privations exnecling their government to help then/ mslic money--thot had gone out of style in the decades of the cold \Val. The very premise of the Church sub- committee's look at ri"E-CIA wzis that there is no longer an everarchilet its- tionel security reason tot to belt% Ono cannot imanlile, for instance, a Senate committee looking three years rf.ter 1964, or even now, at what the CIA may have been up to in Chile in Nor could one imaeine, In an earlier period, that would it: di- rector, plus a top hand for dirty tirldi7x in Latin America, te.:t ify liefore a Sen- ate committee. I one familiar with the "revlaionist"? aritument that. American forcistn joI- icy, not only hefore World War 11, hut alltsnvards. was dominated es,entially by considerations of commerce: win- ning .1';_tlV marketa, invest- ment privileges, and the like. ide ar- gument seems to he persuasive only?to people who are already socialit/i or -Marxists. My own view is that ?pAlitical" consider:dime: {:r and Jear were the stini ci to:' .celd Cr?-ied, the notion that the y aicv again Is; safe Or rii hued eioniine c1?11111 1'0;itiyHy the /.:ieta5-1. ; cm it ;1,..,.Hy 1,01 1j:it j 51 Ii tc! 1,1., 1.; timse Of tho C.e!.yrOng fel-- Hier scrutiny is we all ?-.:ir? in to sc-ii 4 v. hat lies oil 1;10 1.1r Mdl the cold 15e-'60'411P6!L'Ri400e(2005/11728 : ZIA'-RDP91-00901R000600100004-0 5pt`ci;t1 t..tent fcr coaatoliit than :o WASIIIECTON POST STAT Approved For Release 2005t12 :I,A-RDP91-0090 W000600100004-0 ITT and CIA: Uneasy Riders ITT President Harold Geneen had a tough choice. He tag:mild support ITT director John McCone's testimony that the $1 million the giant conglomerate offered the United 7States government in September 1970 was meant to :aid Chile's development. Or he could support his senior vice president Edward Gerrity's _testimony that the offer was meant to block the election of Chilean Presi- dent Salvador Allende. Mr. Geneen showed that at ITT the truth too is a conglomerate. He said he could not .recall offering a CIA operative the $1 million to under- ? mine the Chilean elections but he would accept the - .operative's sworn word to that effect. And he said the offer had a "dual" purpose, development and political intervention. -- On this ambivalent note, Senator Church's Foreign Relations subcommittee on multinational corporations .concluded the ITT hearings, its first in a continuing series on the relationship between corporate activity and American, foreign policy. That relationship, the hear- ings suggest, is deep and dark indeed: ITT, it turns out, had offered the CIA money to influence Chile's election in 1964; that offer was refused, although the ?CIA evidently was active in that election. In 1970, when it appeared that a Marxist, Mr. Allende, might be elected, ITT promptly went again to CIA. The cor- poration feared Mr. Allende might hurt its Chilean interests and it believed, or at least hoped, that the U.S. government remained interested in helping sus- tain "democratic" government in Chile. To its dismay, .,ITT found CIA in July in a hands-off posture. CIA refused its money, both then and later in September -before the runoff election. But meanwhile, turning the tables, CIA suggested that ITT take steps to sabotage .Mr. Allende in the runoff. Finding the suggested steps -unworkable, ITT declined. Anyone halfway familiar with the pattern of Ameri- can involvement in Chile in the 1960s can scarcely avoid feeling that both the UniteC States government and one or more American corporations doing business in Santiago entered the '70s wan a certain mutual ? or parallel disposition to do something to help their friends in Chile again. Contacts were easily made on the highest level, information routinely exchanged: for- mer CIA director McCone was by Low, for instance, an ITT director. It seems to have been taken for granted that either the government or the corporation could and would influence the 1.970 electitn. The (olly question was whether ITT would use CIA which, the hearings showed, was acting not on its own but under appropri- ate supervision), or whether CIA would use ITT. In the end, though both found an Allende victory unpalat- able, neither would take direct responsibility for trying to stop him and neither would let the other use it for that aim. Or is it the end? Understandably, the Senate hearings told much more of plans discussed in Washington than of acts committed in Chile. Yet the public record of events in and affecting Chile cannot be ignored. There. was and is in that Latin nation severe economic dis- location and political ferment. Can any N.f it be laid to sabotage undertaken by ITT or CIA or?one is tempt- ed to say?a combination of the two? The administra- tion ostensibly took a hands-off stance in 1970. Yet then and since, the United States has used its influence in the international banks to block all new credits to Chile on the publicly stated grounds that Chile's finan- cial condition and creditworthiness were shaky. By its own hints or deeds, has the United States contributed to the shakiness which it has cited to justify its policy on loans? Given the secrecy. available to governments and cor- porations, and given the charged political atmosphere between Santiago and Washington, it is illusory to expect that questions like these can be definitively answered. Precisely because they cannot, however, they must be asked: The issues they touch go to the heart of how American policy is conceived and conducted and how American interests are defined and served in the field. It should go without saying that American taxpayers should not pay ITT its claim for expropriation insurance for its nationalized telephone interests in Chile, the more so that Chile's contention stands unrefuted that it was considering compensation at the time last year when the first, disclosures of an ITT role in 1970 were made. Paying the insurance claim would he like pay- ing hospital Costs to a would-be burglar who, after bring- ing his jimmy to your window, tripped and fell on your garden hose while trying to flee. As to the dispute over. the nationalized copper firms, and the issue of debt re- scheduling, we would put these in the "too hard" basket, at least for today. The new conventional wisdom holds that, with the worst of cold war over, economic activity is to move ever more closely to the center of American interna- tional affairs. The disclosures made at the ITT hearings, and the gaps left by the hearings, indicate how vital it is to scrutinize the interaction of corporate and official policy and to determine where hest the national interest lies. Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 BALT I MORE' Mt Approved For Release 2005/14/XPROgy-FDP91-00901 R000600100004-0 STAT The ITT-CIA Story Just imagine this situation: "The United States is conducting a presidential election in which one candidate holds political views hostile to Super- Conglomerates Ltd., a mythical multinational colossus with home offices in Chile. SCL,.as we will call it, approaches Chile's chief intelligence agency and offers up to $1 million to finance any govern- ment plan to undercut the unwanted candidate. The agency is tempted but refuses since official policy, of course, is noninterference in the internal affairs of other countries. After inconclusive bal- loting throws the choice of a President into the Congress (which is possible under the U.S. Consti- tution), the Chilean agency reconsiders by offering 'a plan whereby SCL and other interested private companies would apply propaganda and economic pressure themselves to swing Congress against Mr. Unwanted. The scheme then develops one good attribute?it fails to conicoff. How would you feel about this? Well, if you are John A. McCone,..former director of the Central Intelligence Agency and presently a director of International Telephone and Telegraph Corporation, you would be "distressed" if any foreign govern- ment presumed to meddle in an American election, And you would. be ."even more distressed" if a private corporation tried to interfere .for its own corporate purposes. Yet, alas, this kind of thing seems to have hap- pened in real life right out there in the real world. In 1970 there was a presidential election not in the :United States but in Chile. One of the candidates was not Mr. Unwanted but Salvador Allende, cur- rently Chilels.Marxist_president. And very worried about Mr. Allende was not Super-Conglomerates, Ltd., but none other than John A. McCone's awn ITT. So Mr. McCone himself, who still acts as a consultant to the CIA, conveyed ITT's offer to subsidiR covert operations to Henry A. Kissinger and the then CIA chief, Richard Helms. The CIA, ? in turn, later reciprocated by suggesting that ITT and other companies take private measures to block Mr. Allende. This sorry story has been unfolding before the Senate Foreign Relations subcommittee on mul-. tinational corporations. To the credit of the Nixon administration, most evidence suggests that the ITT financial offer was spurned and the CIA, in. the words of Senator Fulbright, was "going off on a frolic of its own." - Nevertheless, the ITT scandal cannot be written off because certain officials in the White House and the State Department behaved properly. One lesson to be learned is that private companies, and especially those of a multinational character, can do grave harm to U.S. national interests by using their American connection as leverage in the affairs of their host countries. Another lesson is the danger implicit in an intelligence agency that becomes too powerful, too independent, too uncon- trolled. For the time being it is vain to hope for a refurbishing of the tattered 'U.S. image that emerges from this affair. The Organization of American States meeting opening in Washington today may attest to that. But if the Senate hearings promote- more self-restraint among the multina- tional corporation3 and if they 'inspire the admin- istration to continue its curtailment.of CIA covert activities they will have served a purpose. Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 ST. LOUIS POST-DISPATCH Approved For Releate4005/111M: CIA-RDP91-0090 ... And Curiouser Harold S. Geneen, the ITT president, capped the performances of previous company wit- nesses before a Senate subcommittee investi- gating the firm's dealings in Chile. After Mr. ?Geneen had danced nimbly around the contra- dictions of the case, Chairman Church of?Idaho exclaimed that the testimony was getting "curi- ouser and curiouser." Little Alice's Wonderland expression is apt enough. . Commenting on a CIA officer's testimony that Mr. Geneen had offered a substantial sum to the CIA to finance an attempt to block the election of Chile's President Allende, Mr. Ge- neen said he couldn't recall the offer but would accept the testimony. He did concede that such .an offer surfaced again, because an ITT di- rector and former CIA. director, John A. Cone, had said as much. But all the Interna- tional Telephone & Telegraph Corp. ever did, Mr. Geneen insisted, was to present its views to various government agencies. Especially the CIA. What is even curiouser is Mr. Gencen's com- ment on the testimony of another ITT execu- tive that the offer of up to $1,000,000 was not to block President Allende's election but to provide development aid in housing and agri- culture. Well, said Mr. Gencen, it was a "dual offer" ? either to finance an anti-Allende co- alition or to finance development. Build a house or block a foreign election.. While the Senators are trying to figure out what to believe, the clear evidence of a cozy ITT-CIA relationship suggests one thing. That military-industrial complex of which the late President Eisenhower warned seems to have room for an intelligence-industrial complex, perhaps as a subsidiary. STAT 1R000600100004-0 Approved For Release 2005/11/28 : CIA7RDP91-00901R000600100004-0 MINNEAPOLIS STAR Approved For Release 2005/11261.16R-IkEIT41-00901R0006 ITT, .CIA and Chile . "WHAT did ITT really do in Chile?" The question is posed on the cover of an ITT public relations packet received here awhile back. The packet offers its own answer: "Nothing" . . . except such good works as providing employment, investing money ' and paying taxes, training students and operating the -telephone company. ? What International Telephone & Telegraph didn't do was subvert the democratic processes to prevent the 1970 election of Marxist President Salvador Al- lende. But as testimony before a U.S. Senate sub- committee is making pretty clear, it wasn't for lack of trying,. The central plan, according to witnesses, involved an ITT offer of up to $1 million to help finance CIA support for Allende's opponent. John A. McCone, an ITT director and former head of the CIA, acted as the go-between. He said the offer wasn't intended for political sabotage but for more good works such as housing and technical as- sistance. But $1 million doesn't go far in that mar- ket. It's a'tidy sum, though, with which to buy off politicians. Let it be admitted that ITT's fears about Allende probably were justified. Let it even be conceded that ITT had a right to seek protection for its Chilean investment in both Santiago and Washing- ton. But tb attempt to involve the U.S. government in the effort through an approach to its spying and sabotage specialists strongly suggests that what I.TT had in mind was outright U.S. interference in Chile's internal politics. Fortunately, someone ? perhaps as highly placed as Henry Kissinger?had the good sense to say no. Still, ITT must have had some expectation?pos- sibly on the basis of experience?that Washington would agree to the deal. Otherwise wouldn't Mc- Cone have advised a different approach? As it was, the CIA apparently offered a counter-plan of its own to create economic chaos in Chile, which ITT rejected. All this suggests that the ultimate question is not what did 117 fail to get away with in 1970, but what has the CIA helped multinational corporations get away with on ot her occasions? If the Senate sub- committee probes far enough, what ITT did in Chile may seem, comparatively speaking, like "nothing.'' STAT 00100004-0 Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Allytmitf:::)rlicdtiqse 2005/11/28 : CIA-RDP91-00901 PREssApR 3 1973 E ? 30,317 ITT Affair The admissions, denials and admissions revolving around that $1 million that ITT offered the CIA has , caused more intrigue in techniques and diverted atten- tion from the central point. There seems to be more interest in how rrr tried to manipulate the CIA than in the fact that it attempted the manipulation. - First William Merriam who headed ITT's Wash- : ington office when the offer was made, told the Senate Foreign Relations Committee that he pressured the " White House and the State Department to threaten Chile with economic collapse. The idea was to persuade . the Allende government to "pay us off" after it expro- priated the Chile Telephone Co .in which ITT owns 70 pet. cent. The company is said to be worth $150 million. Stich pressure by an American company seeking ? governmental help in protecting its interests may be understandable, but it becomes downright suspicious ? after, reviewing Tri"s apparently special relationship with the administration. It was ITT which made that huge contribution to the Republican convention com- mittee and which received special consideration in an ? anti-trust case. - The current affair became more sordid when John J. McCone, who once headed t.lifA ,and is now an t---" ITT director, admitted to the Senate committhe that ITT did offer $1 million to the White House to implement' a plan which would assure defeat of President Allende. Two points emerge. One can believe that President Allende is not serving the best interests of the Chilean people and yet insists that ITT or even the CIA has no business interfering in domestic Chilean affairs. Secondly it is a bit frightening knowing that firms ? of size have millions of dollars available to buy !governmental policies. The only encouraging aspect is ! that as far as we know now, the money was not accepted. , ?1 R000600100004-0 STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Approved For Release 2005/11/28 : CIA-RDP91-0 PhiLAT3ELPHIA1 PA. EtILLETIN E - 634,371 S - 701,743 273 Interference in ? Testimony by a CIA official before a Senate committee has confirmed that the intelligence agency did play a part, if only a background part, in trying to head off the election of Dr. Salvador Allende as president of Chile in 1970. That part of the testi- mony given by William V. Broe, who was in charge of clandestine operations in Latin America at that time, indicates that the CIA action was confined to proposing that International Telephone and Tele- graph Co. and other American firms bring economic pressure on Chile in the hope of swaying some mem- bers of the Chilean Congress to vote against Dr. Allende. But even that is hardly the kind of inter- ference in the free elections of another nation that tiny agency of the U.S. government ought to be en- gaged in. Mr. Broe's testimony prompted Sen. Frank Church, chairman of the Senate subcommittee on mul- tinational corporations, to observe that "very im- ? proper" moves were made. True, that was not so bad as what the president of ITT, Harold Geneen, had proposed to Mr. Broe before the initial election was held. Mr. Geneen, according to the testimony, had offered the CIA 'a ."substantial sum" to influence the election. Later, Vanother ITT official, John A. McCone, former CIA director, had indicated willingness to put up one million dollars for a plan that would organize opposi- tion to Allende's choice by the Congress. STAT 0901R000600100004-0 The attempts to "buy" CIA services Were .quite properly refused. If thrT378r7vernment ever feels it necessary to oppose actions in another country, it certainly should finance the operations itself. But more to the point is the impropriety of attempting to intervene in another country's election, directly or indirectly. Private corporations, we suppose, have a right to mix in politics in foreign nations where they operate. ITT undoubtedly had the right to op- pose Allende, although it also had to run the risk of retaliation by him and his followers. The fact was, of course, that Dr. Allende, an avowed Marxist, had announced his intention to ex- propriate the Chilean telephone holdings of ITT? worth an estimated 153 million dollars. ?Moreover,, he followed through on his proposal, and no corn- pensation has been paid thus far. The kind of economic pressure the CIA had suggested before Mr. Allende's election has been applied sifIce then and undoubtedly has contributed to the difficulties that Chile has experienced in the last two years. ?The campaign has been led more or less openly by the Americans; but Dr. Allende came out of the recent congressional elections in a stronger position than before. The 'problem of expropriation is still a very sticky one. But the problem. of interference in another nation's election processes ought to be clear. Very simply stated, it is: stay out. Approved For Release 2005/11/28 : CIN-RDP91-00901R000600100004-0 ????????????? PROVIDENCE, R.I. JOURNAL Approved APR 3 1973 ? 66,673 S ? 209,501 For Release 2005/11/28 : CIA-RDP91-0090 AUattv.') 0 'till' e By DOUGLAS C. WILSON Journal-Bulletin Washington Bureau Washington ? Harold S. peneen, the chairman of ITT, --said yesterday that if he ever ' offered to finance CIA activi- ties in Chile, it was just an Impromptu offer that .was re- jected and quickly forgotten. .Mr. Geneen told the Senate subcommittee on multina- tional corporations that he did not remember ever telling a C.I.A.-4gent that ITT was will- ing to collect a "substantial sum" for the CIA. to spend againSt the Chilean Marxist, Salvador Allende, itt Allencie's 1970 presidential campaign. ' But he said he does not dis- Pute testimony to this effect: by a CIA agent, William V. Broe, who appeared before the subcommittee last week. Mr. Geneen said he could have made such a proposal - 'in the shock of recognizing - that our Chilean investment e was going down the drain." One plank in the Allende plat- form called for expropriation of U.S. properties in Chile, including ITT's 159-million- dollar investment in the Chi- lean Telephone Co. The CIA rejected the offer. Also, Mr. Geneen.confirmed two somewhat conflicting ac- ? counts of a later ITT money offer, saying that the com- pany proposed giving up to a Million dollars to supt)ort eny U.S. government plan needed to block Allende's election or to ma Re the ma rx is t more friendly toward U.S. interests. This offer tvae proposed vvith "a hind of dual pur- - Pose," Mr. Geta.en said. Seth Frank Church, I)- Idaho, the subcom mit t oe's chairman, said that either put-pose would "represent an improper inteeventionA# ed can polities,'' am! i - .ford Case, It-New Jersey, said the ITT move was "provoca- tive." ? T h e Geneen testimony -capped eight days of subcom- mittee hearings into ITT con- tacts with the CIA on the company's plans, to influence Chilean politics. As the hearings ended, Mr. Church said he is considering legislation to prohibit compa- nies from offering money to the CIA for any purpose. "The wider the distances be- tween these big businesses and the CIA," he said, "the better for all concerned." Mr. Broe, who in 1970 was the CIA's chief of clandestine services, Western Hemi- sphere, told the subcommittee last week that Mr. Geneen met with him in July, 1970, and offered to raise a "sub- stantial sum" to support one of Allende's opponents in the election, Jorge Alessandri, a conservative. The meeting was arranged by an ITT director, John J. te? McCone, who also was a former CIA director . then serving as a consultant to the secret agency. 1R000600100004-0 The IT).' chief said company - policy in foreign countries is "a policy of not intervening ? a neutrality policy, baSical- iy.I. "YOu certainly violated this neutrality when you made your offer to Mr. Broe," Sen. Church said. - The subcommittee also questioned Mr. Geneen about the .September money offer, which witnesses described in contradictory terms last .week. Mr. McCone had tes- tified that the company of- fered up to a million dollars to the administration for any "constructive": government plan to strengthen the anti- Allende forces in Chile and prevent an Allende vie tory while ITT's Edward J. Ger- rity Jr., a senior vice pres- ident, said the plan was to "reassure" Allende. Mr. Geneen contended yes- terday that he had, at the time, both kinds of plans in mind: either something to en- courage Allende's opponents, or ? if that cause was lost ? something to encourage Al- lende to take a friendlier atti- tude toward U.S. interests. "If I were Dr. Allende," Sen. Case declared, "I would regard- that -(offer) es a pro- vocative thing." That would depend on what the second plan was," Mr. Geneen said. "I don't think I would ever get over the first one," Sen. Case replied. Mr. Geneen said yesterday that his Jul' rendezvous with. Mr. Broe "was set up for me to get information. That's all Mr. McCone had in mind and that's all that). had in mind.' IIe said the "bulk of the conversation" was al-tout the electIon outlook in Chile, and that his money offc-r must littx e been "on aftertlioir:ht of son'e hind." lie conceded that Ile was 01111 ''ii'' when the CU roieeted - the money, but added: "On further thought, 1 might have rejected it my- PefeRelease 2005/11/28 : CIA-RDP91-00901R000600100004-0 77:C.-71 Li &I Approved For Release 200N111,/.?8,:()%-RDP91-0 (,). APR 1973 .,J Spech-.1 to the Daly IVorld WASHINGTON, April 2 ? Pus- sy-footing throegh a maze of en- derstotens.,,?nts, Harold S. Geneen. president of ITT (International Telephone & Telegraph tried to ina%a ITT's attempted rape of democracy in Chile as bland as milk toast. Testifying before a Senate sub- committee today. Geneen nc- knewdec:ged he had offered funds .to the CIA to block the eh?ction in l970 of Dr. Sal'. ador Allende as ? President. William V. Proe had testified t-r last week that Geneen had of- fered to help finance activitie.s to block Allende and the Popelar Unity forces in Chile. limo at the ?time was in charge of the Latin American department of ".dirty tricks." ? Geneen admitted meeting with ' .Broe on July hi, 1970. The meet- -' in was arranged by John McCone. former CIA direc(or, who is now an ITT director. Geneen said: MOIL rd Helms. who ?Succeeded ..McCone and was director until r o ?I ? I ?-".^.1 1.1 901R000600100004-0 S IA I " rt."'""' 1.1 . Li L.: recently, knew of the ITT pro- posals. Galleerl did not admit directly what he had said, and carefully skirted issues. At one point he stated: 'I understand 111r. Broe recalls that I raised a question whether a contribution could be made through the agency to support a de macro tic can against Allende. He says he said 'no.' " 'I don't recall this part of the conversation, but it is a matter I might well have raised in view of ny concern . ? ' -Since I have no recollection to the contrary. I accept it.'' Since the figure Geneen is al- leged to have offered has been re- ported as ($1. million, it seems rath- er a big matter about which to have so little recollection. Witnesses have also testified and documents attest. that ITT officials eng,,:?ged in discussions about crippling, the Chilean eCOT1- only after the 1970 election. Geneen declared, "All that ITT did was to present its views, eon- ;r Ir.?, t,L) u corns and ideas to various de- partments of the U.S. govern- ment. This is not only its right, but also its obligation." The claim that the use or corporaticn funds to control a foreign election is a "very important constitution- al right" is a new angle for U.S. monopoly. Geneen advanced this argument a step further, saying that "the management of any company has a direct obligation to the share- holders and to the employes to at- tempt to protect their interests.- Broe testified that, although the CIA rejected Geneen's offer, it later contacted top I'M' officials about ways to disrupt the Chilean economy, Reports from Santiago indicate that the Chilean government has suspended important talks on out- standing problems with 1:.S.? of- ficials as a result Of the disclos- ures at the hearings held by the Senate Foreign Relations Subcom- mittee on :\lultinational Corpor- ations. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Approved For Release 200/1.!B 19a-RDP91- Misadventures on Chile - "Somebody has lied," Senator Frank Church said in reference to contradictory testimony before his Foreign Relations subcommittee on political schemes proposed for Chile by. the International Telephone and Telegraph -Corporation and the Central Intelligence Agency. Some- body certainly has, and it becomes even more imperative for the committee to establish who it was?now that 'I.T.T. chairman Harold S. Geneen has added to the evi- dent contradictions in sworn testimony. ? Mr. Geneen insists that the giant firm he heads "did not take any steps to block the election of Salvador Al- lende as President of Chile" and that an director :"did not offer to contribute anything to the C.I.A.," in ?-?"" talks with Richard Helms, then director of the intelligence agency, and with Ilenry A. Kissinger in the White house. But that I.T.T. director, John A..':,leCone, toid the sub- committee on March 21 that Mr. Geneen ban instrocted him to inform Mr. Helms and Mr. .Nissin: that the corporation was ready to contribute a million dollars or more "in support of any Govotimicnt plan for bring- ing about a coalition of oppeaition to Alirtale." - Mr. Geneen iriSLLS that all I.T.T. did after the Allende Government took over its Chilean subsidiaty in 1971 was "to present its :views, concerns and ideas" to various Government departments in Washirgton, This, he said, .was :`not only I.T.T.'s constitutional right but also its obligation." ? But Willizun R. Merriam, an I.T.T. vice president, sent a letter and an "action" memorandum to e White -House economic adviser in October 1971 with en eighteen- point plan for economic action to .insure "that Allende . does not get through the next six months." ?N Mr. McCone's testimony and 11In Merriam's letter and memorandum could seriously jeopardize I.T.T.'s claim for S92.5 million in compensation from the United States Government's Overseas Private Investment Corpo- ration for the seizure of its Chilean properties. But the C.I.A. has also been severely tarnished in testimony before Senator Church's committee. 0901R000600100004-0 By making its o vn proposal to I.T.T. for waOrinco- nomic Nvar against Chile and thus, it hoped, persuading the Chilean Congress to reject Dr. Allende in 1970, the C.I.A. went wildly beyond any legitimate intelligence function and also disclosed incredible ignorance and naivet?bout Chile's political situation. If a State Department Witness is correct in insisting that the official United States policy toward Chile, before and after Dr. Allende's election, was one of "noninter- vention," it is evident that the C.I.A. once again was con- ducting its own foreign policy, '"going off on a frolic of its own," as Senator Fulbright suggested, and raising anew the question whether there are effective controls over its agents and activities. The close, confidential links betwe 'Z.., \-4.-.> kL,t .11 P ,1 i. f, -LL i ?.:1 - -I 71 1 gt.V. cues Behn, who became 0 "operational" contacts with involved. It. was ITT which" ., By Laurence Stern naturalized American citi- ITT, which included agency- was looking into the thing. zen when the United States drafted and approved plans 'nun testimony was cm- ., asnington Post Staff Writer bought the Virgin I age slands for sabot of the Chilean Cal, for it may have illunti- tt w "propaganda parables against with the complete approval economy, were carried out natcd the National Security Council decision in eirly . The most lurid of Marxist from Denmark in 1917. the excesses of U.S. imperi- . Corporate Involvement . of his superiors. September, 1970, for dealing ?;alism couldn't have been By World War IT, accord- with Allende's imminent plotted with more heavy- jug to Justice Department Explore Options election in the Chilean con- .handed caricature than the records, a German subsidi- las superior at the time gress the following month . unfolded the past two weeks the company that producecl----Al. Helms, who reports to constitutionally Richard its the hemisphere's first chosen 1TT saga in Chile, as it has ary of ITT was an ()Wrier of weis CTA. Director , in a Senate hearing room.. the National Security Coon- Marxist chief of state. - There was the giant the Luftwaffe's Focke-11,Tulff cil which in turn reports di- The indications in the in- American corporation con- fighter while an American rectiv to the President vestigation, -never ruhlic-IY raving with the Central in- subsidiary was building the through natioral security confirmed by a govcrnment telligenee Agency to subvert "Huff-Duff" U-boat detector adviser Henry A. Kissinger. witness, were that the CIA by clandestine economic war- th fare an elected kit sin- for the U: S. Navy. After e It is inconceivable to was authorized to explore war Ir r collected severat those fatnililat with the Vrivious covert options de- ? over nine tit in Latin Amu iea. million dollars in dantago; ti mrag ghtly aed White signed to prevent Allende gr- - , There, also, was a senior from t?11( U.S. Foreign Douse national security sys- from taking power. Thestt Yfigure in- Claims Settlement Commis- tem that such a mission as actions fell in the shadowy of the American ? sion for allied bombing dam- Broe conducted with ITT of.. region between public pol- L.< age to the Foekci-Wulff ficials in late September, icy and clandestine onera- clustrial elite, John A. Mc- for the CIA he once beaded plants, according to govern- ItYi0--Lefore lions that might. be carried Cone, serving as go-between the Chilean n land International Telephone . lendc's popular election? t? f out without the public sane- met records. congress met to ratify Al- and Telegraph on whose And so Prrs problems in was without full NSC rip-ton o the administration. board he sits. Chile came against a back- ? ITT was the chosen i proval. n- - ?.: There was, furthermore,How did this square with strument because of the pre- 'the spectacle of ITT exeeu- ttiround of bro:id c.orporate Ii e policy of neutrality to vious approaches of It Comic ..1.ives lobbying officials of involvemeot in international which both F:orry and and Mb Chairman Harold ithe National Security Coon- relations. meyer atie,ted? -,tie,?er ,s0,2e S. Gencen. prior to Al- toil, the top-secret policy arm Two weeks of public hear- gested that there was no in- lende's popular election. ;of the White house through hots by the Senate Foreign eiiirosteney. Ti. t-.. .govern- ITT. as liroe testified, -which the President directs llelations Subcommittee on ment .maintained the right, "Was the only company that ;American - foreign opera- Multinational Corporations lie said, to explore options, contacted the agency and (ions. have Provided a rare Subcommittee mcmbers expressed an interest in the ' : The case has propelled l.ithp,-e .0.. the intert,eialion. reacted with skemieol null- current satiation in Chile." :)nto the limelight as Cl'Vs ship betv een corporate in- i, I o ,? I ,ii i 1 1 r erl 1 perational contact men tereste eed public pehey ill (Tit';:;:v (1:11'1:111(r)-e"-;:: ,:l.:',,C i.;If_'!,Ti'io 0,(3) The administration 311 IV si -with ITT a government out- the romieet of U.S. foreign r?m ,_...1nran Fran]: church fri. well have reacted With sonie trauma to Allende's popular Ideaot pointed out, the cial with the most tantaliz- relations, . ac- ing job title' in town, Wil- But it is by no metms a "option" would have become elect on ,vict?11,er isi??ci(;,',?e,Liam V. Broe, ehiel of clan- an operational iiolley. 117, (;.?,;.,-L112,1 J) I---: '1"-"''''''''',J' as it larti al,l, felt th,, ut-t .pot.s hitive?Inaccurately ?,.: picture of clear-ent collm destine services, Western. plan Seii.; wiwoltatiic. As preoieted the election of his Directorate of Plans. : ion, In fact, theve was some -linanultited bv Bcce and the 1"mcIll' jul.':e All:r.''anciri' hemisphere, of the CIA's ? evidence of disorray within a'-.111c:,', ii. w(Telicl iris ii be?n """i'lat-? DC the c(-)lierva. The centerpiece of this in- Hie :aintilliSI.Ciniim toward up to ITT to e:-:,- 011ie On itS live Nzitional Party. Iii 11111 W5 1'/. his het'a the assunption 01 power in The CIA's rejection of ITT itself, whose motto-- septembee, 11)7rxist 0, oi last: fi rst OWO. The gist of the plan ?as--Geneen's overtures th-e pre- "serng vi People and nations elected :Va yovernment everyteliere"--well deserioLs to ti:e eet, .ioeti Hee-list: the re, for a group of Ateon?i0,en vita:sty July rot. toto,vontion companies, under If r prod- i" ?III? ""1d h"". 1.`.111L'd its. mull iwitiond alid COO- L.u..; thf, . z?.1 :ii, njst ration (3 l'i:!. to 1.1,.0 Pio il? :i.i.W1110Za ft.'" I h'e "!eil(..'S 1111"1"1. 001-ill.' l'a tis scale of opc!?;-1- (111,0:in lye:,HAit sai,?,,,clor tioro;, n-T, II, tilt it All,..,?Lt,?, eetd te, clout to eeceierate---o t d s trott t of Allene's election .,,,,,,iii,,,,rie_o?ite., de.?-.).1,,,riyiiii? pros?pects. 11y its ietvit te elelith largest iii III eel.- Tor. ly, ontesed position of e?eitolide ..?ift:eioiet in many, ( eneen's. p.'oilt.r of r bit ii subeovernment in 11 n 1 \ hie. ...-...1 It(ilothi.--','?riatun to- Ii It 1)10 (.1),,.tive w:.,-; to i !..iihslani jai 1 IIII(I to It !,? .:;-. ?,-,1 i,r.:: cliii.,:,m WOW ll ll11 (' a a?:\ lit?Ii.ii? plan lior;1.6011, it netiom, ,r_: ,i DiOre 1 ii;:il 'in t olii'll'it'.:. It y.; Id f.,r.,??..v,.: ett.,,,i,,,, .,,,,.., ito,?,,,,,ft: 1,1,1 ,':.?,111i'l) iin,:ittrictivi, tii too cIA. reported .iiillion in :.:Iii:. onc., of 5.,:.-ic.t nrut i? 11,i ty. 'Vij.; to it, final What the te,,titionthd pat. abd revenues dimly'. 1 9,:.t. N,''.: fel i' L'.:1 ed tiill-ill.t 11 i? 1(111 :w!i_!wsii3 i-, ilwt P.; p0- 1.:;11o, 11'.r. Starting, with the meat.' -I ..:.!,:,1,, :11,.:11?!!1 , 13y i?.1-1,i''! ?ui., III II .!ilirls N't litit'A i'Vt'lliS Cryi,.!Hliit'il in base of Ole Virgin lelends .. oe.istdot t.-'..eerk.tary of Si:?.0 ? ? ,.. ITT Viet: Prt";it.ent 11(V), (lb lie, the C mu IA t i'f'r telephone Colill):11W at Ulu Inc lilt'?y-.51ncr:c:In A ,t- - 1.4e?rily, ihe,,,, t,,hi 4 1 ,,ie :alb- Neeite purz?tuintt ineteasinelY beginnuw. or till itr2.0,,, I-1 -f ,,.,,.,s. :,,1,,yr,,,. ?,?; io,Ther , etc:moot-it, -it w:is limier- (I II eoals; further roil- r)oved'ImAir'RWleaSec2005/11i/26 ?" biA2RbP 91410401 N:101060 , 61100004'0'"ItY "'- rapidly branched out Arkkod hut wiirld under trri-! Wart!. .0 'ici..V? V.. itolli:. it arid C.I A V.',:l.. 10. palish ClitC1-111Tlit'llr, ';0:;lii tc..:ti.i'itio.:111.1AmiL?,:r?.::;1111L1,1rttiiiilt.I.:1'11.: 11;1111ie manattcnient of ti VE17 YORK TIMES Approved For Release 2S0ply/281902A-RDP91-0090' STAT R000600100004-0 C7.P e ' Action On ChileUr"1Lion. 7...?---..-.'..r, ,-.1eP 3ays th__ s,?.,est that the Governmentibusinesse.s slow deliveries as a!ever spelled out to him e By EILEEN ?"-II: \NAIIAN itr take steps to prevent the elec.' 'means or creating cnongh ecoo purpose for which it offered _ WASHINGTON, :',Itireit 29? ' - ; - - Gossens as PresidenLi Chile.: :TN:11,'llornie problems in Chile that :the Gotrnment up to SI-mil- sly,ial to Tile N,v: ..i.,2 7 i; ' 1 1.1011 of Dr SalvaGoz Charles A. Meye:, former As Dr. Allende, a mar,,,.,,,, had;members of the., Congress would lion for use in Chile. Mr. Gerri; sistant Secretary: of State for'.caranaigued on a pLf form of Wave second thougins about, ty had testified that the moom; Inter-American attairs, sitid t0-. nationalization of basic ii Ins !electing Dr. Allende. A cutoff ' wa s for 'constructive" , pur- day that, so far as he knew,1- i-w:tries in Chile, .inclutiing the "of technical help .was also dis- poses, such as subsidies for Central Intellig,:nce Agency:telenhone company of which cussed, , low-cost housing, and said this was never speenically author-'?up,T, was the. principal ot.vocH Mr. Tiro:: testified that hc:., , i ,.,r, ,,,,,,,,,, irm.,? n to Kr incl. to explore the possibility' Senator Church ashed Mr.:had given Mr. Gerrity a list;Ilau `)`-'11 ---- ""?:- -?:- ---- ' of using private American cor-'Mever whether the top-level r.'f American companies doing' Meyer. poralions to damage the econ-:governmental agency that is business in Chita, that mi;;In. be Other witnesses and some: omy of Chile to influence thc.supposed to approve the inlel-:helpful in creating economic internal . company memoran- But Mr. Tv1:;er, now a Sears:advance_ it is known as The,en no instructions that I.T.T.; "Jviclums indicated that the money,. 1970 election there. digence agency's operations in :problems, but said he had Roebuck executive refused to,./.itl Committee?had ever "cle-;ge: in touch with them. was for financing an .anti-M-1 criticize the C.I.A. for discuss- cider+. as a matter of policy that i ' Mr. Gerrity and, lat''r , . , or, lentle coalition in the Chilean jog this line of action with Ii- the C.I.A. should explore the' the company's board chaCongress. ternational Telephone ancl Tele-?feasibility of stirring up eco-man, Ifaro!d S. Gencen, reject-1 Senator Church, after hear-1 graph Corporation official;, nornic trouble" in Chile. led the whole idea becaufta they'ing Mr. Meyer's statement abouti saying that such "exploratiou"' "To my certain recollectionAhought it would not work. ' the $1-million offer, said that) did not necessarily violate the' no," Mr. Meyer replied. I Mr Meyer conceded noderi it was "obvious that somebody basic United States policy of' But he and subcommittee:questioning that if the plan' is lying and we roust talte a noninterference in the Chilean members engaged in a long had been adopted it would; very serious view of perjury election. ,and inconclusive wrangle overihave constituted a change in' under oath." He said the trans- Strong 'doubts about the whether the discussions be- the poliey of noninterference"cript ef the hearings would be propriety of the (T.'...I.A.'s action:tween an I.T.T. officer and a.that would have requited ap-: turned over to the Justice De-, were expressed by Senator J.W..C.I.A. official constituted "pol-proval at a higher level thampartment for revieW and pos-; FulInt-b;dit, chairman or the Sco-icy" or "action" In it required:that or director.; _of the C.I.A.': sible filing of perjury charges.; ate Foreign Relations Contrait- such advance approval. The director, Mr. lielbr7, had, In another highlight of thel tee, and S,-2.nator l'r.'tilt Chun is. The discussions were _held by instructed Mr. 13roe to explore day's proceedings. Felix he- Mr. Church, Dor:wet-at of Iclaho,,Viilliam V. Brew., former diree-!the plan with Mr. Gerrity. lstityn, an I.T.T. hoard fili.!111- heads the subeommittee on tor of clandestine activities MI Senator Church said, how-lher, disclosed that the board multinational coi?porations ml at America for the agency,!. ever, that he was "afraid that' had not been informed k-',1 the is investipting the actiyities of rincl Fsfwarci J. Gerrity, the coin-, I.T.T. did successfully lobby' $ 1 -mhlion offer. He said that I.T.T. in (::.1-1ile.. 'pally's senior ViCi. president for tile C.I.A. on behalf of a covert] in a company of that size ? Senatvr I-'nlliright, Dt!mocrat corporate relations and adver-:operation, without policy tip- , it is the si"eth largest Arneri- of Aritansas, said that it looIed using. They SaW each other isnproval." .. . can corporation, with assets to bins as thouen the Cl.i.A.'Nr-.?.- York in late Septemlter, "That's how this commatee's: in the billicass ? decisions in- was 'responding, to a recitPst :1970, niter Dr. Allende hid von record stands," he acided. Ivolving SI-million were often by a former dire;.:tor of the a plurality hut not a majority' Mr. Meyer also testitied thatimacle without the knoy'leSTAT C.I.A." rot..i,tYr than to govern-rot' the popular vote. The Chili an no one from the company hadithe Voard. mental policy and was "going Congress had yet to mahe the; off in enuther cli:cction." 1.-? ch,-Jice of a President: it Earlier testimony had (lit;' ci?,..c. Dr. Allencl,, ou Oef, 24. L., closed that John A. McCcr,e, ',..slls a t :sir. -.1-ts,.-t di t(s.ussed former C.I.A. chief w?ho becz;me.v.-nis ;',1r. Gerrity was 1.11C:. POSSi- a diret?tor of I.T.T., went to-binty that A:meriean hanks Richard liehrs, hit; sticce!sor,rnM,Ist, cot all credit to Chilean at the intelligence agency, to?lende,rs and other American -------? -- Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 S IA I Approved For Release 200V11728-f"CIA4151391-00901R000600100004-0 ci MP. "i373 10 Ari 7r rrilrill 7r71--..? p . ,4. ,;,...? vi . -1 -I A' ( "17 -41 1.4 0 T.7', (.1, ,iLtiek '.., cvl ii. ? en, a 13 "F?)) J ?1 i? "r1 "R? Ily Laurence Stern ?Wai.hirtgion Post Fto!S ".Viter Sen. Frank Church (D-Idalio) declared yesterday that "somebody is lying" in sworn testimony giVell to subcom- mittee investigating 1TT's ef- forts to change the course of the 1070 presidential election in Chile. lie said he will recommend tirt fellow subcommittee I: 7) )1-1 C.ti1011 ?unmairs and v?-a-s sent out. ment policy maker stuck to Ills: But Why testified he did to '''-'?'''''' out if tbev Made position that the Natio ;al Se.: not recall what the pui?pC).3e stairs" nree prestimalilY meant --1-011P? of' the csr:int was to he. rI.P.Y E.'3'.`:.:.,' at 311.'' By "up- , ,....? ? , , ? to.o., Co.nicil policy ,f-? his superiors in the CIA? !ion' ?U.S. Ant'.3aasacior to Costa maintained its stand against: The cIA operati,T, who is intervt?ntion by economic and; ,. . 1,1ca, said he did not hollIer referred to his discussion. of ? ' coilear,ucs of tha ITT pro.. in Nissinger or staff still in the agency's ernploY,? ;::?11.)' other mea". Ilion Nve must assume," said' ' to infer pi,:in v.-11h an. Church, "that what was being' the auti-Allendo 1)0 ii which he acknowleded, 'ITT vice. preside:1L, Edward: done 13y tlIC! CIA WaS.CIOne on; Gerri,,y, as an operationar,: its 0.0,11, cli \i,.as he nu lob,: unc?er questbming, to- be "un- usnal." Tlie matter, he said, l bled by ITT and they had al discussion. ' i was dropr,ed after Neal's call. When confronted with the i little thing ?:oin.i.,,." l 1'i i (,,:ec-or and \Van Street CIA man's testimony, IIleyer i Helm:, tostified to ',lie sub-; invostraent counselor 'f'elix members review the his:Julep.). .:11,1. hc-,, saw "no inconsistency" l committee in closad ser.sion on! Iliallatyn told the subconimit- . to determine - whether it bct?,Yeen Broe's act?,..?,ns , IITarch 5 before lcavin?_, ;or! 't should be forwarded_ to the the tion.intervention policyw ri to Ills necist, as Arnbasaador to: tee tha Conceit never broti.tht , ; 1----, I.,,, R:-.?-rs .i ? , irst .,, - ? 4; ,- , 1.1') the subject of the million- Justiee Department for prose- which he said ti? ? ? : ,,e ....,iNon ae., Ja 41.,?., ....4, 1,1,1,? A..? //V Al.t.,A.LA011. '.. , : (1'..1 al. ofror to the Nixon ad- cution. ' m this () inistration adhered. l at point of relezing,?his. I inistration at board meeting:.3. ' Church singled out no par- But h m e also at statement. i He first learned about it in Ocular witness in mold rig his gedged :that he was unay;are? Aftiy,...;? a 1 s o contradicted' ?,;,,, ? -,. s rr, Charge. But the senators have of Itroe's approaches to l'1"I' Previml.i 1.?-?silinon.Y hY Ge? 1 11-Y, --.;:;` ""--.--"-- --:11------' Ile although he participated in of ITT that a member of the; :salL'? ? Follo?N?i-.-? the kncl????son el-- one meeting of the National: :corporation's:Washington si.a.i, : , ' ''',' , ' -" ' ?:?ostires, ..1.o..,;(tyn said, Go- Security Council's senior intel-i ,Ja?ck. Neal, transmitted to Lira 1 , :eon dented that he had ever - 1b,?eiice IC CII coromir,ce for; a C,,-..neen offer to Spelld up M\0'1administ1ation (0 coo- o)eratimis at which the Chi-' to SI intitio ?astne, n for ho rnd 1-',1.020:: )l It 1??.':-fl.11?C'llcc" 1C:1111 political situation was re-: s:).',? C ' 1 ...;,:re,? a,, chli...,:i tile: con:se of utt..: e;t:.tion in for p,overnotent intervention; ViCN.VCII. .7%1 cy?-,,r said he recalls r.:-..itheri . Ci'tahust mzo,xist_spe:;:hstsuspect one hand didn't.; the ffgure nor the piii-DOS.3; . In. rez:-ionse to a guesk.ion ocction with :in alleged plan? didate Salwidor Alleilde. know What. the -.............4 0.: CVO:- li2111g InCI1J011C:CI to him' by Chur..:n, II,Ani.tyn said the if perjury action, the Cnurehlv,i(;)11' 11-- ....-1 ITT .???? -, .., 'r.p....?:?? '):.1::'-ht (i-)???\rjc-.)) Tile' y*.,...\er Oil fc'tCrilelirlitt(;loi:?1:1111: (:-.:'?:?1C. 1 ..,?1 Intell:?;enee ,rigcney,: nont:c palicy, Peter G. I'..'-'...':-! (2,iontmittee, Chr,d'i'analt,...-C Fulbri?,ht char:-..ed was e.eci.-. ? hcarill:ls, may clocisiNely 10 in c,,,? ,,, ., 1 ? . . : .?. once the fate oi: IT i"'s $92,5 - 11.! , million claim on the t.)verscas ?.. ? _ ? . ? .; ..,i 511- , . , 'c':?1?11': Silo?loci the ".cor.-in':.iliCei heard many contradictory as- sertions about ITT beard chairman Jlarold S. Gencen's offer of a lar..J: sum to the :baard cf nei-(?:? In addition to the possibility an "in :tenth c-ttion" c; '" cf.-Claimed Forcien itela.: 1;': Neal. Private, Investment Corp., al , i " - IT, .1.- I, t? `li-t? ?? ".1-? request of ?.:, aite: oli on a frol? c oi its ov:11" in government agency, as cunt-, .1:)1.0s'',:,.?)}'?;;,_?13y`ofol.;:;,:el,:? dijr,%:':s[ii'll.recess I111,c, i?n3-,::;, a,i:\?IiettlJi-(,__I;:,3:01c,11,,irlci)lc.,',-.):?;?-?:ric,.1. of Firs telephone colol'anY board member, and ?t he. rs. 1.1......',-27,t.c:' cili.i.-.',11.-,ss ?1.11c-e1,11r1, penszltien for Chile's sei?zure tor John .1. IIIcCatie, all 1TT, subsiciiary in 3 9-i 1. ; "Is the CIA N.:ot ktng for t he; c.?...,,p,;,,,.o1, c .,....t. (.. ??? . ? , Cli-oirch is cimirman of the: united s0Ite.? or 1.0,. viT :,,?(1 cis110,1) meeting -,vas? Set ate Foreign Itelations Sub-:, lecer,c.:??; 1sl.,00: F,,,,n. C.:;,,,forci: DIT:111eC:,,S.:"1,1,(.: entlililittee on ?Ii ultimo ional . P, Case. (1I-N.J.) -1,?,',.?? li:.??,?e t.:_is- ren.uest n..... I :.'s fel Corpor,:tions, which bits con- limony ?l Ii l',1cCone and oth-: n a'.i.e.e, clirc etc.,. , ,..:.. ... ..,,I. i :dueled two wcchs of hearings ors that rfT was iebbyinri the ...., l.,?:?:.:.m. :ter:on: .?.....'..;:a . 011 :he ITT (ihile311 Z111;01'. : government, having conversa.' did?.?.'t t:....,.e any :.ction I can: yestc:rci..ty Onto,rics A. at'1.1odisthlevictl:11:AI..:,eziry Icissingcr?rc?-"11-11" a 1:`2sult .6-' 1 11'H. Thc? 501 (01111 ee heard Aleyer, myrtle:. ii....istaiit seen:- McCone testified la:t. Iyeek :?.? . .' _ - ...? -1' ....ri... ..? - - 1, lor.2'neon inee..ting v.:it'll (.1.., :teen v. bah v?Ts al?zo ? "e? li ' '1 \ tary Oi. state for inter-Ameri- that he rei,..iyei to I,..,:::.?,,i.a:,.;:ea. ...:.: tion. ......e.-,..(,,I ,:ien can affairs, V.110 ri:-ITI'iCil III it a.,:?.1 theit:cIA dhreter i..,,:eh:,..?1.0., I',?:,.1?.?on :???? ?:tlied that :-.fter U he Nix o n lm str n aiini,itio rocla- :iI, iteini.s an offer by Geneen . Ir.:lined firIn in a policy of ? Ii, cont:.;b:ne as :-,11..,.:: as Si ?,'''' '2" --":1?-?::' ?????'-.t:::'''': non-intervention in Allende's 1,..non fur a U.S. ::loVLI''.11:1".11 "*;.:?"":.:: ? :?-i':.`1` :? r'--i:1" '.:' . T .s.-'. eit:ctinn (Itit'ill'`, 197). pi;:11 to tit-cart .: 'I, 11c:tile's elec.:?;,`::::,: (2i:,. l-i:',,l:0 ':',;::::.1:-..::':.:?.3 el.( r'-..:?; ? -1,:i:::: ...".??? ;be :::no ? ???. ??, C:litireit i 1.?on in 1073, . ? ride:" i.I mid:tic:m.1 to..timor. : ;31.?;,?, i tool: the I?t? :ition ;bat .;???11', ''.-:??-? yester,..ay from ",11il:ain V. 1?1?01.'s mission was to "1?N:?:.,;0 l?-'- ,..., tl`.. ,?,', ::1 ...C:-.;,'.: broe: tri,..,.....ner CIA chief LII el,:ions" for a; thin in Ci:de ll :l::::".. '? ??:: 7.'??:".??????:'?" cland?-?stute opc?????:atiere, in the ; .101 ????,.., ,lot in i:self a 10111 .1) ; ???-? . ', , - r'-'-ci. '??? ( "I'.'elc?i-.1 Ilentispliere, saying , of the 1:.?:'? t.olley :.'.?;-,in:t in..":?????'? i .:? ???:c? : ..-:c,ii.: r: ; 1......:.:- ;:.::',:?cn r?i???'? ' t:????? that in? transinitied tii ITT a I 1.?,., ntion in IL. I.I..;?,:on. plan foriiito:;1.'i 1 .1)...' the CIA : ::\ :eye': rt f:::?;.(1 ta rins.i?er ???)???? l?lidi to ''li-c?le?a:e ec.i.imie 011- t,e,,?.,?ien:-: 11-1?,1 sul,e,:i. mit.., lx:i 1.7.? I': "-2...., a f'. :-..ier rest in Untie in hal)..s of blo;:lt? : member..., on vliftt sl:eeific in.:;:?-''?' :".r. 1:;'".' .:''''.00'S A. In an ..I.11-ndt.? vicwry. ttructions v?ere giN on to for-:::? ?-'''.''lll'tli,'' (.c":".:11 Jr:00. cold 1.),(k _1',-,,i)f,!-':11 vi1:: CIA 1"iret?tor lieliii3 I,,,'.'0'. lli 1,11111-?%?????- .'luan p:M?PrP;VO klPriReteasei2005114/28 \:..jetAZRD15'91.'T.biiitiikoi5t049910. ' \ ...' by ?,,,, 11.1,(),.,.?,,,, ,,,?. ii,,,.., ?,,,,,.:,,,,,, ,??,,,,,, ic,,,,.-::,..,:,,, (:i. ? . _(,, :..., .. : . . Q004-0 )10 added iluil "I vent tm- ci ction, for the CO; I .eis v. i',1: .,' '':' : ?: ' " ? .:' - ?????-? ?-? - ??'.?? - ce:?:????,, ?-?..; "?;?:???;???,...i :3 ? i ? :-.,? I .? .1... ?-?eii.. I'll'. ri-ne iO.CP.101' :-;',...,ts! .1);:l?ar,- 3 0 MITI 197"i Approved For Release 2005/11/z8 : CIA-RDP91-0 t.0 .1 ?,.. .??4, E : . 11 1,1 N:415,1) 14 LI ti t: V, 0 J17..1117,1TIAII ()TEARY Star-Ncws S:a01 iftr The Central ii;felligence Agicy has admitted, throtii-.;11 the testimony of one of its agents to Senate. Mve.,:tiga- tors, that it generated and passed to ITT a series of ideas .for disrupting the economy of Chile, during the crucial Chil- ean election period in 11.)71). William V. Broe, former chief of vices in CIA clandEstine ser- the Western Ileilis- phere, told the Senate sub- committee on multivational corporations in testimony re- leased yesterday: "They vere ideas staffed, they were passed up to me by people who work for me. went upstairs (to his CIA su- periors) and I was sent out to check if they made any sense et all." l'revicis testimony by Proe reverCt?;!:1 that he eco- nomic ,lisrpption a list of 1\Jc:elle:au firms in Cohn to Nev; York on Sept. 29, 19'1) and preamted thorn to ITT S:?!nior Vice President Edward Gerrity. '.1 lie purpose of du wi;s to ecterinine ,.,,,}1.11cr the ideas were But :1;roo. told the subcom- ciclafe Salvador Allend c, Bree's testimony wes that Geneen said this moro?y to be a ed to back the cam- p:?1:-.'n of conervativo that he re;.-ctcd the offer,L as Gerrity (iid .tot tiiOw with .H-(.1- CIA pl'ort:-,sr,is when :ilii ode fin- isheci first in the popular ?and was on the veTe of a ri,.cioff victory in the Chi- loan (;lira his A. Meyers, former assistil. secretary of Slate for intHi--Ainerieon of..:.airS., told the s.,P.bcommittee yestc..r,lay palley was not to irt;Tv(...y.,,. in Chile's irlernal affairs. 1r said if eithe,r the Genee.?1 money offer or the CIA econoinic cEsruption plan h.:1d I can carried out, that would have been a violation of U.S. policy. Dut .,i(syer's testimony star- ported the conflict in tastimony the ....tibcoromittee Ias re- ceived the ITT incriey cffer cf up to St fl.he discre:trley prompted 3sster toy to state ''S.Dmeo.ha is and to disciese his iritenti="1-1 to :?.end the healing trLnsci-ipt, to the. Dcpartmut et' .1-?.v.',i,;!e. Tile conflict Ill testii-nony ttAcn to 'i' o:-:111 was di's- cri.h?s?!-d by Church in theF,e terms. He said former CIA mittce headed by S2n. s?Dirc,clor ,T;;;In ltIcCon(!. now Church. D-Id.-do, that G.errity an 'Tr director, testified the was negntive toward pro- rrT c!Tor of up to ?'''Pd the ? i(-'?-?.'",15 for ti.0` .6ejciit of. in (.;(2.:ritylOOm fat lot oF sub- coirunitt(.:.e rel:,ased th,,? end cc- 1 1..,r:;e's who Jird ,f.'101-A?rn.t.ed the pj::F.s and wipthc.r the New York 111.11C11- iT!, V as a sc,r,!s of or..-:tion that ini-,21it .hcluded in l';,e oiLn.; kee su.e0ested ITT t.??::t:c?,live were: that hanks should del:iv or 105ronr,,v ererljts: hat {...n pasis; Hin f.;) th-1 1),2it (thc.: f` H'i1rHir o:!n i'.?.?:, , ell .1 il1V 10, I,,,-;!?1, id of- f' red tw; An- proved For Release 2005/11/28 u.s. fw- lre_at c?,u- unde[' oath. Church said, that the n,oney was eiJc?....,1 to M?y(r by ITT 1,',7ashil;zt,s1. Neal for tie par- pose of low-cost housir.:,1 arid egrieolLural pr-Jjects in Chile. Anti that neve': off.ered 1111)1 any n?or.--,y for t,ny pa- Neat's 1., s tit he (..`, tsvd 1)1 Viet' :?01 :nid is.. Oil cino (1,1:11',11r0 on 1'.1/19 (- . 111.j1,4 n1,?, FS 1.1). (,,C;,` f YVI I V' S. 0901R000600100004-0 SI ; pr, 1;71R s 1.5 ttiLi.J k?-?ij 4=7::?,,, 0 0 tf L: , C, , - t; .; !; ,i .., ,' ,, ,?i ',,,,;i a' t,) It k,,i1 ?, -ii tk ii I; ii ,,-, the reliahility of IrT Irter office memos becan:Je (nle written by Neal r,bout his conversation with Meyer 're- fers to Meyer as "Cinick," Percy, mating the point that Meyer is known to his friends as "Charley," said people like Neal are preoccupied with im- prosing thcir home offices, Neal had written a .memo to -icr ITT official saying "ClAck" ieyer undersicod GC-11,1.'01,1'S concern and offered to Bat Meyer tesfificd that he had no if:coke:len of Neal rnenironir'O either a ficure or a purpose for the. funl. Meyer said there was never any change in the U.S. policy of non-intervention in Chile and if there hi.(1 been he would have 1;11Cr..1:r. ahout it. Percy ,:..ked Meyer if Broe could have none to see Gerrity in New York to find out if Ame-fian corpo.rations were doing cen:nlry to U.S. policy. ltleyer said it was. Clrirch ic in at' Itc d dryly, "If Broo was trying to trick FIT, that's a strange Wily of doin,, it." Church added, "No cco-, nomic options mere Ci Cr flat led -1:::ore this commit- tee." This v.-as in response to d.Hclar:::ion. that he n3thLg sinister in CT:\ (.1:.-;otislom; with Gcrrity abort tIe ccone-nie F1Luation hi Chile. Meyer s;iic.: here is a b?tween actual pol- icy and 1k it i: normal clurm Ii ('ill the U.S. Eturly ? ;1ir.-.:,-av 7'1.;:yer a.nd lIt 'a : It'-. 1','' raH tbe CIATIT .:;.ter y : CIA-RDP91-00901R000600100004-0 LOS Approved For Release 2005/11/28 : CIA-RDP91-009 0 MT; 1973 Corporate Cloaks and idaowe,rs ST 01R000600100004-0 .0, Sen. Frank Church (D-Icia.) wants to make it a crime for a company or an individual to offer mon- ey to the Central Iutelligence Aeency, or for the supersecret agency to accept it. Testimony before a Senate foreign relations subcommittee, which is looking into the activities of multinational corpora- tions, has pl'oduced disturbing evidence that such a law is needed. There is nothing wrong, of course, with the CIA maintaining contacts with American companies tioine: business abroad. They can be a valuable source of inlinn-ncition about trends and events in CAAICT countriCA. It, would be quite another thing, however, for the intelligence agency to accept financial contribu- tions from corporations. The national interest is not necessarily identical to that of U.S. companies doing business in a certain area: no one should ever have reason to wonder whether the CIA is working for the American people or for a corporate donor.. Yet William V. Dice, former head of the CIA's Clandestine operations in Latin America, told the Church subcommittee t1-1-:t in 1n) the agency was offered a substantial sum by Harold S. Geneon, board chairman of International Tel.ephone & Teie- ;i-rapli Corp. The purpose of the proposed contribu- tion, which \vaS; rejected, was to block the election' of Dr. Salvador Allende, a Marxist, as president of Chile. Earlier, John A. MeCone, an ITT director, testi- fied that several such approaches were made by U.S. companies clurin.; the time he was head or the CIA. All were rejected, be said, but obviously legis- lation 15 needed to inal:e sure that this kind of thing does not happen. According to Brae, the CIA itself at one point toyed with the idea of enrolling U.S. comp3nies in a scheme to promote economic! instability in Chile and thereby influence the Chilean Congress to block. Allende's election. Former Asst. Secretary of State Charles Meyer told the subcommittee Thursday that the CIA proposal was never accepted as government policy, that the agency was only exploring various options. Maybe so, but it is disturbing that intorfeicntiT in a free and democratic election ;Process was even con- sidered. If there is a bright side to the Church hearings, it is that such vital but sensitive inatiers ,are being threshed out in the open, so corrective action can .be taken. The Act ninistration dr-serves credit for breaking precedent and allowing a CIA .a::-.--, testify before a. Senate committee. This was a case Nvhore such testimony \vas clearly in the public in- terest. STAT Approved For Release 2005/11/28 : CIA-RDP91700901R000600100004-0 PROVIDENCE, JougNAL Wi3j3r'oved For Release 2005/11/28 : CIA-RDP9 IsT4' S - 209,501 Sen. Church Sees 'Fairy Tales' L0 P. 0 ta7z, ? LI CH' in g By DOUGLAS C. WILSON Journat-BuBeau iru,hingtork Bureau Washington ? Sen. Frank Church, D4daho, said yester- day that "somebody is lying" to Senate investigators about dealings between Interna- tional Telephone and Tele- graph and the U.S. govern- ment with regard to Chile. He also suggested that ITT officials have been telling "fairy tales" about the com- pany's plan to offer up to. a million dollars in economic assistance to Chile in 1970, during Chile's presidential contest. Church said, "The record before .us, as it now stands, suggests that the ITT success- fully lobbied the CIA on be- half of a covert operation (in Chile)." He spoke as chairman of the Senate subcommittee on ? multinational corporal ions, which is continuing its inves- tigation into a 1970 rela- tionship between Yrr and the CIA.. dollars for economic assis- tance to Chile. They disagre,?.1' about their intentions, howev- er. John J. McCone, an ITT director, and former director of the CIA, said the idea was to encourage opposition to Al- lende in Chile's runoff election Oct. 24. McCone said he spoke about the offer to both Rich- teeard Helms, then director of the CIA, and to Henry Kis- singer, President Nixon's na- timal security adviser. Aimed to Reassure Edward J. Gerrity Jr., a senior vice president of ITT, said the proposed aid was in- tended as a move to reassure Allende, not to oppose him. He said another TIT man, Jack Neal, relayed the offer to Charles Meyer, then assis- tant secretary of state for Inter-American affairs, and to Viron Va.ley of Kissinger's staff. Sum 'Substantial' A CIA agent told the sub- committee in sworn testimony this week that rrr's top exec- utive, harold Geneen, offered his agency a "substantial sum" in July, 19T0, for the CIA to use to support. the Con- servative candidate against Salvador Allende, a Marxist, in the Chilean election. In his campaign, Allende had threatened to expropriate 'U.S. properties in Chile, in- cluding the Chilean Telephone Company, which .was owned by ITT. The CIA nen, William tyviroe, said the CIA rejected the offer but later, in ;41)- 1e: ober, propesed that ITT and other companies try to in- fluence the election by put ung "ecorionic pressure" on Chile. Ilroe said yin' rejected that But the question of possible perjury arose yesterday when Meyer told the subcommittee that the ITT man did not make such an offer. "I re- member neither a figure, nor a purpose, nor anything con- crete being mentioned. And ;n certain I would re- member," he "It's obvious, based upon the sworn testimony that we have received to date, that somebody is lying," Senator Church said. "We must take a very serious view of perjury under oath," Ile said the subcommittee will review the testimony to see if any iiesaury is involved. if it is, he will recommend ti-v, Dcmir 1 sent to tote appropriate ac.- 1 ion. In the ceurse of the Meyer testimony, the Reiha semoor ,:bts cvi,c caO?reci inoney to be used for ren- plan as unworkable. :.tructive purposes Ill Chile. In earlier tieeinvely, yrr of "we cz,n only 1;0 so far in oar ficials heve told the E U1)0?711- rnpa city for accept :ng fairy mittee that the Approvet1-fortRe1easer,2005/11/28 : CIA-RDP91-00901R000600100004-0 feeed the eoveroment, toot Vaky I cd Liii y.7sterd.y September, up to a million that Neal had e.lLl him 1-00901R000600100004-0 r"--7 (7e7' about ITT's willingness to provide a million dollars for a government plan involving Chile. But he said no -specific - uses for the money were men- tioned, and he did nothing about the offer. He said Kissinger never told him about a million- dollar offer by McCone, and that he, in turn, never told Kis- singer about the million-dollar offer by Neal. The subcommittee quizzed the former assistant secretary of state, Meyer, about the CIA's approach to ITT to sug- gest that U.S. companies exert "economic pressure" on . Chile in an effort to swing the election against Allende. Meyer said he had not ? known .about the CIA ap- proach to TIT; but he main- tained that U.S. policy throughout the entire period was one of non-intervention in Chilean political affairs. "Then we must conclude that this was done by the CIA on its own. The CIA was being lobbied by the ITT and they had a little thing going," Church said. Meyer argued that the Broe testimony indicated that the CIA's approach to TIT was only "to explore the possibili- ties" for a change in U.S. poli- cy; that no change occurred; and that -"nothing sinister" had happened. The subcommittee members ? disagreed with this. "It's ? clear that we've got two poli- cies: CIA policy and your pol- icy," Sen. 3. William Fut- bright, 1)-Ark, .told Meyer. "The CIA vets going off on a frolic: of its, own at the request of withoot even ? youe knowlisige." PROVIDENCE', R.I. JOURNAL Approved For Release 2005/11/28 : CIA-RDP91 - 66,673 '? S -.209,501 ,., 9 19T6' Money to Aid Allende Foe L.'74`361 1r i rf p ires gv Geneen himself now is By BOUGLAs C. WILSON scheduled to testify before the ? Jcaan31-11111,ctIn Washlw:ton Burrau subcommittee next Monday. Washington ? A CIA agent "When Mr. Geneen appears, told Senate investigators this week that the head of the In- ternational Telephone and Telegraph Co. once offered his agency a ''substantial sum" to influence the presi- dential election in Chile in 1970. He said the CIA .rejected the offer but ? later ProPosed that ITT and other companies try to influence the election by putting "economic pres- sure" on Chile. The agent said ITT, in turn, rejected the CIA plan. The two attempts to block ,the election of Salvador Al- lende, a Marxist, as Chile's president were disclosed yes- terday as Senate investigators released parts of the testimo- ny it took Tuesday from Wil- ham V. Broe of the CIA. we will read. to him Mr. Broe's testimony on these very crucial points and then ask him to give us his an- swer," Senator Church said. Broe told the subcommittee that the ITT head offered to collect "a substantial fund'' for the CIA to use in support of Chile's conservative presi- dential candidate, Jorge Ales- sandri, one of -two candidates tinning against Allende. Allende threatened in the campaign to expropriate U.S. properties including l'FT's majority holding in the Chi- lean Telephone Co., an invest- ment valued at 1.53 million dollars. The CIA agent said he re- jected the ITT proposal to hack Alessandri because "the United States government was not supporting any can- Sen. Frank Church, D- dictate in the Chilean elec- Idaho, said the CIA's will- lion." ingness to let Broe testify and Ent Brix., said that after the to allow key parts of the testi- Septemher election, %then the molly- to be made public was presidential contest was unprecedented. thrown into the Chilean . Church is chairman of the congress, he visited an rrT Senate subcommittee en mut- executive at the corporation's tinationid cor,,oraihns, which headquarters in New York is investHatin.r, 11-1` efforts to City arid proposed that 117 influence the Chtion election and whey companies take and U.S. policy toward Chile. various steps to hurt Chile's lie said rroe's di :cicsures economy in an effort to indicated that "very imprep- strengthen Allende's oppost- er" moves were Irla:tr:. tion in the congress. Eree said the ITT offer to lie said liii arranged this the CIA was malie to him by Harold Gene( chief opera t oft); er and its chairman of the h,,ard, lige on Ole nhtht i.r On:y :Pp), iii Cencon's :?,.t.;1 at Me Sheraton-Carlton II al in Washoction. Iltce at the lone vats the L'IA's ot i. deanne services, V.-c?stcra Hemisphere. In pr. vAous tc.,;anor,y fate - fore the anh??orcun;tice, prr executives no In the knowle;.0 Pr ":'('?;' could Influence meeting with rrr on the in- stt.uctiens of Iticherd Helms, then the head of the CIA. Broe confirmed earlier tea- t; aionz,? by the UT official in- volved, Edward Gerrity, that I' e company rejected this 1-lan aa unworkable. Toe ;.-,ent snid the CIA pro- '.51was I ascii on "a thesis that additional deterioration economic situation number 01 STAT -00901R000600100004-0 117 . . . congressmen who were planning to vote for Allende." He suggested that compa- nies hold up deliveries due Chile and expenditures there, and withdraw technical help, and that banks delay giving credit in Chile. While ITT rejected this plan, (L-Am (-7\ ti C,r4 r In questioning Broe about his July meeting with Geneen, Senator Church asked: "Dur- ing the discussion did Mr. Geneen at any time indicate thEit the fund that he stood ready to contribute was in- tended for constructive use, technical assistance to agri- culture, the building of houses or anything of that charac-: one of the company's di- ter?" rectors, John J. McConek--- No. It was to support Jorge ? Alessandri," the CIA agent replied. told the subcommittee last week that he had told Helms and Henry Kissinger, Pres- ident Nixon's top foreign poli- cy adviser, that ITT during this period was willing to put up one million dollars for any U.S. government plan to en- courage formation of a con- gressional coalition against Allende. This offer apparently was separate from Geneen's earlier offer in July. At that time, while McCone was an ITT directot4, he a:"so was serving as a CIA consult- ant. McCone and other ITT ?of- ficers have testified that the million dollars was intended for "constructive" purposes, such as housing and technical assistance. Bree said Helms had told him that his July meeting with Gr.neen was set up at lieCone's racist. This cor- rohosate.; the testimony Mc. Cone gave last w-cc?ii. But McGone also said he - knew of no pre-September plan to ral-ie merey far use in the Chilean (lie c? Lion. In his earlier testimony, .1IcCone said he believed tha' while multinational corpora. ? tons could offer support for a government plan, they should not take "indep.rndent initia- 't,.c" to involve 'themselves in. the domestic politics of host countries. ''Is 11) (IAPPeoVed For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Chile's ele; Approved For Release 200N11,/g8L.:,y91A7RDP91-00901 29 LiAR 1973 iiL (424-v-?[-, (111Vii ui ? C311}1 1E11 En Wa,hinglon,Bureau of The. Sun vd, Fr177-71 11 ii u _J. Q.?Did he say to you that Washington?The following he wanted the fund controlled arc excerpts from the exarni- and Channeled through the nation of William V. Broe, the CIA? chief of the CentralA.?YtS,he Aid. pence Agency's Clandestine ? o ? Services for the Western llemi-. Q.?Did you agree to accept sphere, on his contacts with the fund offered by Mr. Ge- the. ; International TeHlione. neer and Telegraph. Corporation , concerning the election of Sal- I A--No. I did not. N. actor Allende as president of; Q.---1)Id you explain to Mr. Colleen why the CIA could not A.-Yes, he did. Chile in 1970. Mr. Broe was the first CIA accept such a fund? - Q.?Did you call Mr. Edward gent ever to testify under! A.--Well, I told him we could Gerrity, the ITT vice president a oath before a congressional not absorb the funds and serve in charge of government oper- committee on operational ac- ! as a funding channel. also ations and public relations, to ' told him that the United States- arrange a meeting with him in ?tivities. . his office in New York city? !go. ? ernment was not supportin{.!: A.?Yes, sir. any candidate in the Chilean. Meeting in New York tor Frank Church \ D., ; the discussion did this call, once again. Q. Idaho), the chairman of the Mr. Geneen at any unit indi- L- was made under the authority Senate subcommittee on mul-; cate that the fund that he' . STAT R000600100004-0 01, 11? Li A.?They were aware I was meeting with Mr. Merriam. 0 -- o. Q.?Did Mr. Merriam at that luncheon, or any other time. advise you that he was under great pressure from the head office in New York to get something done in connection with the Chilean political situa- tion Or words to that effect? Questioned by Church The questioner quoted is Sen- tinational affairs. Question?On July 16. 1970, did vou meet with Mr. Harold stood ready to contribute was A"......yes. ..t. rel Ws to be for. or was intended for. constructive use, technical as-,- - o 0 . ' Geneen, the president of the sistance to agriculture, the " D 1 You c . . ?cu.. Ay on September 29 ia? llOth in intermitional ll'elephone and building of houses, or imything his office in New york city? Telegraph Company? of that character"! A.?Yes. A.?No. It was to support Answer?Yes, sir. Q.---,-Did you discuss with Mr. Jorge Alessandri. Q.?Did Mr. [Richard] Helms ,.. . Gerrity the feasibility of possi_ [director of the CIA] advise Q.--It was to support. J(?ge Ilk actions by Ls. companies : von that Mr. John McCone, E. Alessandri. one of the presi- designed to (-reale or ;weeks- former director of the CIA, dent" candidates?ate economic insianit iiy in that someone on Mr. I lens'sj had called him and sug -- itested 1 A'Ycsi, sir. ,. Chile' (..??lo the c \Anse oi his coo- te suiff meet. with :qr. colleen?' versaftm with you did Mr. I A.---1 oNilloled '.'? Ilk )1r. t A ?Yes G !G eneen advise you dial ITT errit!' th kia e '.ibility of possi-- ., sir. . ? Q....._when yoil met with :or. 1 nfli other U.S. compimies in :' hlo l'letiOnS tO ZIPI)1' SkPri,'. Geneen, did Mr. Geneen ask eCO- In1 had raised an election- nomic pressure on Chile. Yes, ? ! fund to influence the Chilean isir? ou for n detailed brieling On 11;ex door's, thereby creating presidenthil election which ;! Q.--- W hal (11(1 you urnlerstand the political and economic situ.; took , stroner pres..ure? ; piece al that time? I! the purpose of applying eco- ; ation in.Chile? A.?Yes. Ile stated that a , momic pressure to ht.'? Geneen requested group of businessmen had de- I at the time. Sep- formation on the electoral situ-I sired to invest in the 106-1 I, tember 29. the Christian Demo- ation, such as the status and, ; election and they had eratie members of Congress potential of the eandidates au(' Licted Mr, :\lcCene. who St were shov, in ?; indiontions of! their Partie" and ow (w111},ii',,ni then Ii D( 1 Iii director of ? sw-ingim! their full support to as of thol date. That is hat ; ; central intellnience, and v-"ho ! Allende in the belief that they I W e talked about. would not accept the fund. Ile ; eeuld inlhe a poliiird bargain, Q.--Did Mr. Geneen say In ; with him. 11 re:is felt il a large, you that he wasi r iii .io Q.__ 1,;(1 he mention \ ou assemble an election iond tor ;hat oihter been in- itne of the Chilean pi?esnlyritial , volved ;),...,ides II T 1,-1?11 io candidates, Mr. Jorr.-ie E. Allis-I t.midri? tr'h 111, I than Democratic congressmen ? !swung their support to him he i would take office with a man- date from the majority and he would be in a very :strong position. Worsening situation At the same time the eco- nomic situation had worsened because of the reaction to the Allende election and there were indications that this was worrying the Christian Demo- - t" ? congressmen. There was a thesis that additional deter- ioration in the economic situa- tion could influence a number of Christian Democratic con- gressmen who were planning to vote for Allende. This is \vhat was' the thesis. Q.---Did you discuss with Mr. Gerrity the feasibility of banks not, renewing credits or delay-. ing to do so? A.?Yes. sir. Q.?Did you discuss with Mr. Gerrity the feasibility of com- panics dragging their feet in spending money and 'Waking deliveries and in shipping son re pa ? ? A.--Yes, I did. yon discuss with Mr. Gerrity the feasibility of creat- ing pressure on savings and lean insititutions in Chile Sc) ; that they would have to shut 04 0. A.---Yes, (lid. ? Q- In ;?-C1.`1011111,..1. 1970, did Q.--111(1 he say that the' yell so ?yjco amouni of the food v,ould be , ihiof N 711yrridio ; the olflue of bi 1 A.--flo iii(1?e;ifed i.e \\-;e; con. ' to to l000lf? he .,t 1 ri(411 jur*Oproved?Forvioe\qe 2qqN1i/g4 : CIA-RDP91-00901 cif ic , the CIA :ids sit el this owl did A.---No, he did not. iyott go with their authority': Q.?Did you discuss with Mr. Gerrity the feasibility of with- drawing all t,ielinical help and not promisMit 'airy technical assitailee irm tho :inure? yes, sir. STAT R000600100001 0 Approved For Release 20015/i8,RCIK-RDP91-00901 Li Li ji r"-,, 1 0 'iim Ai Zts:-..11 ? ti By JEREMIAH O'LEARY - Star-News Su.'d.f. Wri!er A CIA agent has told Sen- ate investigators that he met an eilleial Cf 117 in New York on orders from CIA Di- rector Ricuard Helms and explored with him the feasi- bility of applykyi, economic pres.mre that mint affect the outcome of the 1970 Chilean presidential election, The testimony was from 6- William V. Brea, former chief of CIA clandestine services in the Western Hemisphere, who testified . Tuesday in closed session under oath before the Senate Forei;-.1n Relations subcommittee ea multinational corporatic,ns. Broe described to the sub- Committee headed by Sen. ink Cauaci, 1)-Idaho, a nt,mher of me.otinv,s he had with top-rani:nig during the crocial period of the 1970 Chilean election which ProPciled Marxist. Sal- vador Alleade into pc.exer. JAIl the mectins, Brae told t"..?.2 subcommit,ee, stemmed from suggestoia of John MeCone, e an ITT ddrcestor and former CIA chief, to Helms, and from Helms' instructions to Broe. 'foe New York inc:-tin g was with I:dward Gerrity, s,entor vice pres'i(datt el ITT for cor- porate afiairs, and Broo said he. arranged the S.:pt. 30, 1970 meeting on instructions from "Did you dtscuss wth Mr Garrity the feasibility of actions by C.S. com- panies designed to create or accolcrote econric in Chile?" Church asIted, "I explored vita rily the et actions ta spiwly s.em,! ceo- neinie oresqtre on chile, yes, sir." Lroe ltree ex?)'aissd that at that ft:to lila ad- teti,Te.10:1 i'1 tile cmd ? ' ? vcri (,: I e!,.? H It ',?);1 111;,11.07,' 1)111r01:::: ,?301,i. : ' P :1(7., ? 1' ;;;,1 Tomic, hut needed the Chris- tian Democrat h' vote for the runoff in the Chilean Con- Bi-o2 also gave information that appeared to contradict te.dimeny von I.'ne subcom- mittee earlier by Gerrity. Gerrity had testified about an earlier offer by ITT to pro- vide the U.S. with u2 to i31 million to ?.pply to the Chile situation. Gerrity testified the ir.oney was to be limited to constructive projects, such ps heusing, and agricultural ex- p:msion. But Bree said he had met with 1 TT President Darold C caeca in ',Vashingten and Cencen had told him ITT v:25 prepared to Ps'emble, . Con f und f or Alessandri's c ampaign. Church asked Brae if Colleen 1-:ad ever irdieated 'that tile fend he stool ready to COTI- Libute was to be for construc- tive use, technical a.t.:sistance to, agriculture, building of liollSeS, or ..anything of that. 'character?" ?Br(?e. replied "No, it was to :;appolt Jerge Alas- sandri," Broe said the CIA did not accept. the money ofier. Earlier in the questioning Ilroe, described a :meeting he lad .-Iiii.stton with in: ? Gcneen which -.91-y,.:orted the to. ci- n-jolly of .1'.1cCone ir ao cvi- .L ClO radiet \i1111 tt-ie ttiflclv 1?0;--Cived by the subcomMittee from Gerrity. Bine ao said that Careen told hi:,', ITT and other U.S. lad rnised an eke- tniI fuad Ia 1971 to i'.1.:2;11.!0 the Chit: an presidential e!ec.- lion. CLu::en, .ecordis,g 10 1:11:1 the r,ru.:ed that electia e,.d lid eontd.-,:l._ ed McConc, W.113 1';',LS17 11 Ct.\ thrlt ate- ('?- wout.-.1 rot acceiA tee fund. Frnas.,41 he irid lunch v, t {.1% h:.111 1: 7\ 1 eWif, on SOW,' hy pitHic1.1', 11:d 11.?lidri:.; ltoliert Ilerrellez iii- 10 Ii an Radomiro 000600100004-0 STAT STAT L. Woe said he merely told Me - riam the Ilendrix-Berrellez sug-gestions sounded "ail right." Church brought out in cpte.s- tioning Broe about his meeting with Gerrity that they discuss- ed the following, actions: That banks should delay or not re- new credits: that companies drag their fe2t in spending money, making deliveries and shipping spare parts, creating pressure on savings and loan institutions so they would have to close, and withdrawing all technical assistance from Chile. Broe said he considered these measures ?,vere to create economic pressure on Chile but not to lament unrest that would load to military inter- vention to keep Ails ado frorn the prcsideacy. Broe said he peovided Gerrity with a his Of U.S. companies doing busi- ness in Chile and "advised ? him that Paso were cocoa- aids that could participate providing the economic cour:in was leasbie." Church told a rzuss cork ference that Gerrit'.y had told Broe at the New Yoit ins-cl- ing he, didn't think the plan to provol:e economic pres- sures would work, i_nn does not appear in the i.-JTh'ed transcript released by tao subcommittee, Tile New .Yerk Tira:?.s re- ported that according to tn- ternal 110 mei-noes that were -road into the sohcommiRce's record last wocit, re- jected cause he jc1:. they wouid net. Sen. Clifford Case, R-N.J., said the rceard ws:s is)t dear en w lictir 7 11:'0(.! Nay., spechically to ?Y.... r the cecnemic G,?_?e- ri;y. Vras ?.) ftH ? Schlesinger Agreement "When Mr. Gene-en te'l- fies next Monday," said, "v.-c will read hi:a Brae's testimony and ask iitni for his version of the facts." lie said it was too soon to be making judg:ements' ala cut poble periwy in the con- flicts in testimony. Bree's appearance mart-cod the first time that an ooeicat- ing agent cf the CIA had test- Died before. Congress. The unprecedented appear- ance wa sthe result of an agreement between Church and CIA Director Jaines Schlesinger that CIA would L.? have the opnot-tunity to dear the transcript before it was released puhlicly. Church made 26 pages of Hoe's tran- script availa1.7.1e yesterday. An additional 18 pages were still being ptioccssed by CIA and parts of this testimony will be released later. Today, the subcommittee wid hoar testimony from for- State for inter-Amcrican af- fairs Charles A. Meyer; Am- bassador to Cost.a 'ilea Vim P. Vaky, a forMer Latin ad- viser to theNational Security Council and Peter G. Peter- sen, former White HOuse 1101111C adviser. orRelease,2005111/28;1,CIA-Rb0611s.00901R000600100004-0 ;:nsi ;t:viii,1:1, Approved For Release 21A5/11Y28r:TCIATR1DP91-0090 29 MAR 1973 C, o , , -,71 ? ? -- II --.,, 1, A ..- r- - 1 ti ' ! ' . + 1 ? s ' tn ' ., i. '..3?.\., '''' -:::./ t i Li n 11 A I 1 $.1 i., 7,1 711.-1 ".-.Z.,?".? 0 A p.(7 (.....7.1!1 p cy 4,1) 1.1y Jr.III:".7,1 1...?,1 I 0.1,F,AllY s. V. ti;,:r intelli;',.:nce. lie said Broo ' ,,it - . rn,,,:i;: the sucresticirs as ;Ill FCCIIICr Ass'..-i:tant Seer; tary operational plan. Church then of !..tate for , , .., ,? . zb...::::.. 1, t,lat phut ,Nct.> .Ai fairs ? Charles A. l'.Iey or to- consistent. with U.S. policy day told S[._.:15.'..2 iavestic'.::ters towarc, Chile. Ili, snt,v ';,,-..ti,i,:.,: sinister in ouxus...-,ions on (.?,iile. bete, cen a "...1y reading of Broe's testi- CIA .cxiit, and a ten 0?;,:iciai of mony," Meyer answered, "is tho Irdernatiolcd Telo..,:',hon,,, & that be eNr,lOrt:;1 'with Gerrity Tele;;raph Corp. action and reaction of econom '..1.',1e CIAzi:nt, V,'illiam V. ic det.'.rioration in Chile Plat .....11.0?:?. coo ITT ,...,,,n;,-?,.. vice wc.uld occur aryw-ay. Ilad Lilo str:,;,:_,,e,,tions hcen adopted, that Pre,:ident 17,dw,-,rd Gerrity met in Ne\S- York ca Sept. 2,;!, 1NO, 1,,vould have been a char0J.0 of .and dis(..nrsocl feacil)lc met-ms P011eY? They wore not. They of exei?tiug economic p:eF:!mre tils-lr.,:oared." ? on Chile prior to the election of ?.ie or contended that ;Ire? Marxist President Salvadore ProPO 'cc' no firm course of ac- Allende.lion to Gerrity but only str!..f.,- Secrt testi:I-l011v on the gestedtew "-I ".si" I."?3 of ao- ma meet ing was de public yes- tin? fie c?L'sel'ibel th',3 as roa i - fr . . . 01 "ce thinkin;[ that o ay. . sort ,lo,es 11110 policy Mai:1K,-; CI. cry- clay URCier questionin from Sen. clay from A to Z." Frail% Church, D-I(;;-:',-to, chair- Broe to Senate investiaa- , ,, ,, , . man of cne ,.--:enale sti,s,commit- tura lhr.t Ile J11l with Gert:itv tee on rn.n.ltiorAlonid corpora- on ot ci;,rs from CIA Director tion,,, ii \1.L tostiti-d ',here vIlici,._,I.d ficups. WOO ED change in the U.S. 12.ov- iam V. Broe, former ernment's poii,73 of not inter- chief a CIA clar,d,..,;,.tine serv_ venIng in Chile's internal al- ices in tit- Wes,ern Demi- fairs. sphere, testified Tue:,0,-,y in "You hove to make. the dis- ciused sesf,:ion unf.i...:sx oath. tinction between policy ziEd Erce deseri.(7, a num In... eNamination of poilcy oi 1,..,:,:etihys 1,,,c, had N.,..;:,:n wi. Meyar said. Tar,king 111 1 1.ia1.3 dnrim; "It ,is within the. CIA's Nile- . the crucial period :..1'f the I 070 tiunal re5uanibil1lv to col;eet Oilcan election v,-hieh pro- intellii!,enee i olative to world- peiled Ailondc into power. All wide situat',ons ;:cr?:1 I fin :.I no'.4- the t-1eetim2s, l'...rc,3 tc.,ld fne ing sinkter or ;lnyhing th;tt;.--u'ocomr,littee, stemmed from indicates a chatT?e of policy in vsu;.,,q,e5tein of John McCone, learni:vi, that Broe discu5scd an ITT director M1(1 former or eNp1ored or brainstorrnc-,J. CIA chief, to :Helms, and from economic presures on Chile. Ifelms' instruz..tions to Proc. Because it was not palicy, the "I )id you' dlcms v...2J11 111r policy did net ch.,-u:e." Gerrity the le,sibility of po3.-.. (lurch deciare.1 the l'cc,,., siblo actions by U.S. coni- Yori; ine.,tiu!,? Wit', 1,0', :,11 (,;,. P.11P -...s cle.;:.;.;.n.:',1 to create or elttnce. cl ii-?5,111:,-..,,ice b7,a, a acccerate eccnoinic in.l.abill- :.,eries of: s...r-:.:el.l:...,..:5 re,:-..d,.. iy ty i:i Cnilo?" ChIrccii ....::-;e:-1. Dice to G,:rrit.,?? 111:-.t,t hove. "I eNplorod ?.-...ith "..k:r. Coo- 1......n iiii.,de 311131 a 5..ei.iotis 1.,,.ir- rity the fe01i:,11.1 y oi: r',S:1510. V:17"A 1.:'..C)1' (.1Y:A in Clr.,!'H) C11:': :'. far b.-_-0.,.....,1 Ille e:.".?ot;.0.1 C. R000600100004-0 STAT actions to apply eco- nomic preznii e 0:1 c;,;,:, sir." Broe Brea. e:plahted LI:tt at time -the Inc econc,mic cei:d in- fluence a nu;n1-..r o: lion Democratic 1' 7.:17`,...-!1'.0!1 V:0 Were tO Allende" in ti:e Oct. 21 run- off election. Allende had won 0 narrov; plurality in 11.1 Sept. 4 Icr,.?ral election over conrervative Jorge Ales5andri and Chris- tian Democrat ladorniro Tomic, hOt ne.Y.ed. the is- lmon vote for the runoff in the Chilean Con- gro5s. ? Broe al,,o gave incormation that appeared to contradict testimony givcn tile subcom- mittee earlier by Gerrity. Gerrity had tc5tifieJ ahout an by ITT to pro- vide the U.S. v.ith up to SI million to apply to the Chih situation. Gerrity te.iitified Lie mone:,- was to he Ihnitcd to constructive projects, sucli as hou.--.Ing and ...-Jgrict'litural ex- pimsion. But Brow 5aid he had met with I '1".1' 1 1,rold Concert in Washir.,.-Jon and Gorp.ea had told him ITT was prenared to rIssi".Th!e. 00 fund .1 o r Alessanciri's cmpaign. Church asked 1.3roe if Colima "end ever indicaled "that Inc fund he stood reody to (1on- trilinte WaS to hO 101' construc- tive use, tochni(:a1 assistance 10 a;:nicul1ure. I) uilding of lieu.Ts, or anything of tint charater?" r,-.pied "No, it suppo:t Jorge Ales- proo s;Lid the CIA did not noel-pt the -money 5.1-..1rlicr in the qc.,5tioniril BIT? cio.orl'o?Ni 1 11 had in V,-a:0in:1;on v,ith ITT Pro:Wont 1 !mold S. Gencen V.10(0 su],ported the te.ti- inopy of in an evi- dent con:radic.tlon with the testimony rece.:ed ny tne subcommittee from Gely:ty. Broe at,n Laid thit Gene,,:n told hint and other 11.5, companies had rake.d oleo- . tion fund in Fill to in: comae Cu: Chilean presid?.ntial. elcc- lion. Gene2n, :,co.ordia7, to Broo, said the rre,.:p bn.-i- nessmen de ,ired 1.3 invest in that eice;;;J0 and hod coni_act- cd wit.) v:as then CIA clirecor, but that Cone I\ c...rid not accept the. fund. Bloc i:.1!cl 110 had lunch with UT's Wa5lur,0t0n represcnt.a- tive, _Merriam, in the 72.1etropolit,m. Glul.) here on Sept. 22, 1970, and discussed scioe prop050ds 031 by ITT licodri:z and ilof.ert Bervellez for ? some spending for propaganda in the Chilean and Europe,,,0 radio and telErision. Droe said 110 merely told 'Mer- riam the liondrix-Iserrellez so-_-_;eL:tions sounded "all Church broulr,ht out in clues- tioning Broe abeut his meeting won Gerri'y that they. d h7anss-- ed the following actions: That. h:tnl.zs shoiki 6,21:-,y or not re.. credits; that comp:mies drag their foot in sp::mcling &liveries and shippin:t 5mb paiLS, creatlm.; prcs.sure On 5011105 and loan ius,titutions 50 tv,y would have to close, and withdrawing all technical assistance. from Chile. Broe said . he considered 1110:1S11.1C'S were to create economic pressure on Chile but not to Eyhent nore,d, that wonid lead to mil.tary inter. vonlion III ke:-.9 Allende from p:T.7.idency. Brco said ho pt-ovidcd _;errity %%La ahot c,f U.S. eenioauies dIlti 01.55 in Cil".e a-,[1 I im that these were conna? that c,-.Juld providi 10 too ecor._rmie couro V.35 fea.dble." Church told a pres eon- Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100004-0 Approved For Releasa00-11IN :-e1A-RDP91-0090 R000600100004-0 2 9 MAR 1973 parts, creating pre. sine uii ainiroaclincl national security 'IT rri I r 1;171-r 7 4'4 t .11. Li._ Ai By Laurence Stern waolingnin Oust WL :ter A. high-ranking Central In- telligence Agency official has told Senate inve,itittators that ? he was offered?and declined substantitil fund'' by ITT; boat-ft chairman tlarolit S., Geneen to block the election ; of Chilean President Salvador: ? Allende in 1970. ? In sworn ?testimony released, ----.yesterday, William V. Broe,! former CIA chief of clandes- tine operations in the Western! Hemisphere, also ! acknowl- edged that hr discussed steps with ITT officials to acceler- ate economic instability in ? Chile at a crucial political pe- riod for Allende. iliocs testinviny, given to an investigating subcommittee Tuesday under an unprece- dented arrangement, contra- dicted earlier assertions under oath by an ITT vice president that Geneen had made the money offer to finance bons- inn and technical aericultural STAT savinns and loan institutions adviser Henry Kissinger and to close their doors, and with- Helms to convey Genecn's of- . drawing technical assistance. The CIA's endursement of- 71-1n 41 1C1this economic pressure, said ? ? k 9 - Ilsoe, was designed to discour- ti ? E.; -ago Christian Democratic con-I Pressmen from supporting Al- lende, a i\larxist?Socialist, in the csucjal congressional bal- loting on the presidency. "There was a thesis," said! lime, "that additional deterio- ration in the economic situa- tion could influence a large: number of Christian Demo-; erotic Connsessmen who were! planning to vote for Allende." ! He told the subcommittee; .look at the situation. It is not that ITT executives were negt- one in which our capacity for alive toward the plan because! ; influence is very great at this they felt it was unworkable.' ;particular moment . . ." The maneuver, described in ? An intensive 'lobbying pro- Chile as the "Alessandri For-! !gram was conducted during mula," was looked upan fa-- :mid-September by I'1"17 offi- v01-1-011Y by then U.S. ?Aillhas-' ? cials with top administration. sador Edward Norm. and ITT," officials for some form of in- -neled by the CIA ? to sup- port the candidacy of Jorge Alcssandri, of the right-wing National Party, against Al- lende. In declining the offer. Broe said, he told Geneen "we could not absorb the funds and! serve as a funding cliannel..11 also told him that the United! States Government was not supporting any candidate in! the Chilean election." The CIA official asserted that Colleen at no time sug- gested that the money would he contributed for housing or agricultural assistance. ITT's. vice president for corporate relations, Edward Gerrity, tes- ? titled last week that Geneen, intended the money to be used for such purposes and not to influence the course 'of the election Under questioning by For- ? eign Relations Committee Chairman J. W. Fulbrieht (D- Ark.), Broc saki'. ITT, not tile CIA, took the initiative in at? assistance in Chile. tempting to intervene in tile Geneen is due to testify on Chilean election for its "own .his financial ()He,* to Broe on cospot ate purposes." -Monday. Until then, son. It was not American policy, C111-11Th (.1)-1(till") 'aid Proc. said, to influence the YestenlaY? the illvesdl--'2tors Chilean elections in itvould not "pass judnment." on The CIA witness said Ge- the possibility of perjury ac- neon told him that ITT and tion in the n'T investi gat ion. other American companies Church is chairman of the , raised a political fund to influ- Senate Foreign n ios 1fiun- committee on \l lilt! n ltinatioal ?nee the "temite of the 1204 Chilean election, when Chris- C.oporat which is con. Han liemocrat Eduardo Frei durtinn the inquiry m . rine panel came to power. but that john questioned roans. in closed sny.. ? ,N-MeConc then the director, did stun Tuesday momiinn ann submitted the transcript to not ac.ct-}" the tile Ch.\ for i eview. Church Bron's testimony indicated said it was unprecedented hr that the agency tool; a more an operatin:!; aneilt of the cooderative attitude with rrT :money to :dye sworn tti. in suosequent meetings, fol- mony to a coneri.ssiiimil lowing Allende's narrow popu- tinal tet commit tee. las plurality nr. Sept. 4, Iii70, 111-0 th;A l!ts sec-ill but liefure lie w?as 1110 ineetin with Gnncen vole of the Collet-in Coniicc?ss the shemnon pid el on 'the tc;i0\5irc-`, month. the imi lt of .Inly IN, 1:170, un- Ar,rin at Ow dor ill^:trdC'ACMS lioni then Heim,. r,ror ;41H, lip :1;1,'1 (r1-% l"r 1;1'.11"rd %I. Col :' 9 11*. 11' ili :1?-,-; ITT i?-c-cutive ? ninv pita e./1 by President N Arm and iho (1,?tyfiotiati1lg econnmic sit- lipp(iLilt('d Ambassador to oation on chile) could be ac- Iran. ? cel?isited At this torclin-:, !Approved ForcRelease.12005111121&H cJ4RE1P91-00901R00060 for of aid to finance a U.S. government plan to block Al- lende. On Sept. 16 Kissinger dolly- cred a not-for-attribution press hack-grounder in Chicago in which he said, "I don't think we should delude ourseves that an Allende takeover in Chile would not present mas- sive problems for the United Stales and democratic forces and pro-U.S. forces in Latin America and indeed to the whole Western Hemisphere . . . So we are taking a close as well as by Allende's Chilean opposition, as a means of re- storing Frei to the presidency tervention in Chile. Gene.en's offer of financial aid for a CIA. operation was rejected. by setting the stage for a new But on Sept. 29 Brno, acting elect ion, with the full consent of his sti- lt never came to rmss. periods: endorsed an economic Church said yesterday he program to frustrate Allende's thoui.tht it was "very candidacy in the Chilean Con- proper" for any American cor-i gress. poration to offer a large sum; Broe testified that he also of money to support a CIA in-! met with ITT's former Wash- tervention in an election. He; insiton office direetns William ; said it was also "improper pol-? 'Atorriain on Sept. 22, a week. icy" fin- the U.S. government ? ? prior to the Gerrity meeting, t-in t ? - i ITT 1 e t ? o n s, p , coil eta ons? . and pose his assen o in the same objective. I proposals for covert supporti In a meeting with newsmen, !to anti-Allende newspapers as! the Idaho Democrat said he I well as the hiring of radio and; could not clarify the apparent !t e I ov is i on "propanandists". contradiction between 13roe's 'favnrinn other candidates. decimation to GNICell that the CIA was not supporlinE; a can- didate in the cIction and "Mr. ATerria111, without any discussion of those (proposals). said, 'What do you think of?? iBnie?onet" sots economic vet( ? 11thein kr lt,,, all rnd right, midr oepl TAT designed to prevent Allende !testified. "'Chen there was no from taking office. Bloc's los-? Oniony, he said, "would have' The anti-Allende press and to sneak for itself." television campainn was pro- posed Sen. Clifford P. Case (ft- ,posed by two yr P field opera- N.J.) also observed that "the' !fives, lial liondrix and Robert irecord to rne iS 1101 clear." 1-.3errellez from Santiaeo. ITT; ; One po,siNiily under con- !officials testified that they! ; sideration is that the policy of never put tile plan into opera-1 the U.S. novernment under- ;lion. \yea chann,,, h.-An-eon itroo?s ; The inirpose of Church's ill-! first coniat1 v.11.11 GC.11Cen and I quirY is to dolesinine whether snlisen ;tent meeting with !r1:(1: 010thinly. - ill ('11CC in affect tla out' 1,7,!;?st woo,. ! come of the 1970 election and thatHelms had told hint in 1-xt""! to "inch it 10,11,;;;rty .lioltoor or lila, active cooperation of ;tin CIA, _ITT ;tin m t a iintis e othrt, y coinpn tps oclod that, t'.1.(11111 their finiss of an Allende ernir Ct.\ covert opera' ions ni in mit ion were prompt ed to Omar( Alende's acce,,sion pledges of thel 0 had decided to take no action ;i2ntsen offer' d the ctr,,,,c,i with C;;,riity stiottiat fond --- which t%ouldiIl0curtailtp!,?, bank I and chart. credits d li an det-eries of sp are ever.?\1('(:(111c, an ITT tic - rot led board hi crirly SeplernI)or, luny- 100004-0