US AND ITT IN CHILE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000600100004-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 46
• Document Creation Date: December 19, 2016
• Document Release Date: October 18, 2005
• Sequence Number: 4
• Publication Date: June 30, 1973
• Content Type: OPEN

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
..report 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 thoue.ht
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,Acii.v.L.ci 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 .'..is-la..ei, 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 sued.to 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 grcati.cr 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 the.so
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 k.ne.,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-
name.so 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 c.nc.
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 interratiot.al 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
s.in-,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 ?..c..it!"., a
model of chanee /for all of Latin Amis.
ica ---aim orderly reformi---.1 Inne?:1 ec
genial both to Anerican poiit;catin4.er.
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 Alier.de 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,Ni.de'llornie problems in Chile that :the Gotrnment up to SI-mil-
sly,ial to Tile N,v: ..i.,2 7 i; .1.1r.es ' 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-,..il .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,..T.sl
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 c.ni,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. '??? (....il
"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:: ni.er 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 Illron.c.th 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 phu.se 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- pc.se. 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::-.--,ent.to
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 h.ve clruie.cd 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 Irter-Aineric.an , , .., ,? .
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
...er 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 i-..er
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 ....ni,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 mec..in:t 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,h0107:11.se,, 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