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December 19, 2016
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October 18, 2005
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March 17, 1973
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WASIMICTON POST Approved For Release 2005/14&11:1eA1-W6P91-00901R000 17) .7111F;1.ei U.71.';a111ii- .51- 1,? 4 fl I ? 1,4 '1 LLiJ'kii. a.I O 4-111 "r1 "Iieriei 6-11 4i-71? -F LL-11.Uji QA!',"21 t1_1 By Laurence Stern Washington Post Staff Writer A special Senate subcommit- the Armed Services and Ap- tee opened its investigation Ipriations Committees. yesterdfy into charges that 'When a situation of this the International Telephone sort arises, it is a matter for and Telegraph Cc. engaged in negotiating the terms of refer- covert political operations to (ince- in order to protect our block the election of Chilean main concern--intellignce President Salvador Allende in sources and methods," said 1970, one government official. Meeting in closed session, ITT, the nation's seventh .the Foreign Relations Subcom- largest industrial corporation, mittee on Altiltinational Cor- owned a 70 per cent interest poratiors heard testimony in the Chilean Telephone Co. from IT]: board chairman Ha- (Chilleleo) when it was expro- rold S. Geneen and former printed by the Allende goverm Central Intelligence Agency ment in March, 1971. Chile Director John J. MeCone, a broke off negotiations for member of la"1"s board. compensating ITT after the Subcommittee Chairman Anderson documents were Frank Church (Li-Idaho) said rondo public last year. both witnesses were "quite The iorporation has filed a forthcoming . . . The ques-;$92.5 niillion claim with the Hoes_ we asked were all an-! Overseas Private Investment swers!d, Corporation (OPIC), a federal The inquiry is expected to agency that insures U.S. him- delve deeply into contacts be- I nesses against losses front con- tween ryT executives and the ifiscation by foreign govern- CIA's chief officer for covert 'merits. intelligence operetions in La- Church said yesterday that tion America, Willinm V. Boe, the outcome of his investiga- before and immediately after tion would have "a direct Allende's election. Broe, who I bearing" on OPIC's settlement is Still F' CIA employee, is un- I with ITT. The contractual derstood to have been lot cc- deadline for settlement of the viewed by the subcommittee;lIT claim is next month, al- but it is not clear whether he though it can be extended by will testify. consent of the two parties. ITT corporate memoranda " Irf would not be entitled to Made pablic nbursement OL'IC found Inst year by col- . that its actions in the host untnist .lack Anderson record ; couniry were sufficiently pro- a series of ineetines between ; yogative to justify the expro- the CIA official and top execu- Print ion. tives of the communications ; Memoranda in the Anderson conglomerate, among them file suggest that ITT execu- Geneen, On one occasion, ac- lives Snuihit to encourilee op- cording to the memoranda,: position within Chile to Al- 'Brno as:Jid for I'll's help in lende Os well as to influence petting American hnsinesses policy to oppose his in Chii:! to promote an eiim ? :Oarxist government. lItit nonne !ice country, ? :here is no evident e in the Church said yesterday thnt i'eeesd that the concloinerato l'we haeci secured the CIA's iii,recol to carry out Broe's ;c0oper:vim-1 in the inyesth(i-, leeen plan 1 sahritai.,,e, the ;lion." T le testimony of aeinicy econemy, 'representatives, he 'added, To ju.tify it case for reirm ''Sold! 1),? in SOI011. HI] \,';'111-11., Ft l' ci y have to C Church's ;nice rely heavily on testimony 'lion, it, was unTerstooil from 11 (611 tie) CIA cc is that its 'official sources outside 'lie actions in Chile \\A-'I'f' within Foreien kelationi suheormeit-; the h'i'nds cii ProlirielY, 'Hue I I (CT` tillt iho ()I CIA co-' ii,ienev, for its part, will have ApproVed,Fon Release 2005111123 CIA,R1DiR91 -00901R000600100017-6 'Hon are still 1;eine inei,itellea.imietuneined approailies to INorinally the ('I .\'; deniini.s; ITT did ion have Ile, appi oval Ion 01 11111 HUH(' WI)0 till CIA. SIAI 600100017-6 Approved For Release 21131C25/11128 TDIAARDP91-00901 1 C MAR "ii7,3 2 ITT. OFFICERS TESTIFY ON MILE Head of Senate Panel Says His Concern Persists By JAMES M. NATJGHTON ' speeiti tei The New York Times ? . WASHINGTON, March 16? After hearing closed-door testimony by two officers of the International Telephone and Telegraph Corporation, Senator Frank Church said to- day that lie remained "con- cerned about the implications" of its involvement in the inter- nal politics of Chile. Senator Church, 'Democrat of Idaho, declined to be specific, but he said that the cause of his concern would become evi- dent when the Foreign Rela- tions subcommittee he heads resumes its hearings in public next week. - The corporation was accused a year ago of having sought the cooperation of the United States?and the involvement of the Central Intelligence Agency --in preventing Dr. Salvador Allende Gossens from taking office as President ef Chile in 1970 and in trying to topple his government a year later.. Harold S. Geneen, chairman and chief executive officer of I.T.T., and John A. McCone, a director who once headed the Central Intelligence Agen- 000600100017-6 cYi met with the subcommittee on multinational corporations, for two hours. Senator Church said that the meeting had been a courtesy intended to "review, the general course of questions we intend to ask in the public hearings." ? , A Two-Year Inquiry The investigation will be the beginning of a two-year inquiry by the subcommittee into the broader issue of how multina- tional corporations can influ- ence United States foreign pol- icy and have a bearing on the United States economy. Senator Church said that the hearings next 'week would be important not only to get the facts about I.T.T. and its rela- tions with the Marxist Govern- ment in Chile but also to help establish guidelines for corpor- ations to follow in foreign countries. I.T.T., has asked for $92.6- million in compensation from the Overseas Private Invest- ment Corporation, a United States Government agency, be- cause of the seizure of its Chilean telephone com- pany by President Allencle's Government. Senator Church said today that the hearings next week could have some bearing on whether. the compensation is granted. At issue is whether. I.T.T. involvement in Chilean affairs might have provoked justifiable reaction by the Allende government. Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100017-6 k0 71" tcfn WASHINGTON rOST E a. ,fippr9ve?.d Frfaii elease 2 a 1/-4819;7.3 iR000,,6110(1 ,040,, (G0:1,i tl LLd a JUL Li) 111,,t .;- /1.? 11 1-n.1 ? cliancvl. and that thoy lwpe ifj (.4 -77-7-7-V 71, 0 By Laurence :-.-ttern ' Wa:3h!r...lon 'V.'1?:tel"' The first public inquiry into the clandestine political urwrations of? the Interna- tional Telephone and Tele- :.:raph Corp. against, the Al- lende government in Chile will unfold next month on Capitol Hill. It is expected to probe deeply into the giant inter- nal 1011211 re- L'.iionship with the Central Intelligence A::ency as well as to raise questions about ITTs own political intelli- gence operations ;1i10'02 d. which will be conducted by the Deflate Belation:1 Subeom- inittee on Multinational Cor- poratiOns,.?headed by Sen. . Frank. Church (D-Idahol. i ill ('isntlr,- Olt 111)01111.0 ef- fOrtS !JV re0 officials in 1970 and 'Pl.; t to block the elec- t:Mc' cijlean Pee. Sch.' Allende and then to 1- hia government by s. an economic cid- 1-' Chile ;.,c ? 0 tile subieet of a ni\-estl'....,Atiolt by the r?eas corf). (.(.)1'1(:), -.:,-,11 a..i.iticy that irniera- 1.-.S. till 1111.5115 , ',in:fiscal:ion by for- 'ye.crenients. 01)1C nrit-t decide. tinticr an April I fleadlirm, to pay in"lion claim to comperts.ate seii.e..'e of the Ii''; '10' ion's C:10.cati Tele- ; Co. if'itIltE:lcof - ? ?-??m, n 10etis of IJOHl -? , :21' 1,[el. e. ell'.01e1S e' 1 /eel 'to) '\'u'5 1111:1 III 111 of \11.nide and al), his I. 11111)1 lit'tl corpor:o. meing- r;Inda, including at least one session with ITT president and hoard chairoman Harold S. Oeneen. In one of the In' memo- randa, a "personal anti con- fidential" cable sent on Sept. 29, 1970. to Gcnek:n in 'Brussels. 'ITT senior vice president E. J. Gerrity re- ported that Broe had visited .him and suggested that ITT lIcip in promotim: a pro- gram \vit.,' other American businesses in Chile aimed at "inducing economic col- lapse" and provoking a gov- ernment crisis. A subequent Gerrity \vire to ITT's \Vashinfdon office indicated Geneen con- sidered lime's sue 2estions "not workable" and that the ITT head felt "we should be very discreet in handling 'Erne." The 1-v11,00in-flip between ITT and CdA in the ami-Al- Tondo campaigit are crucial both to the Senate and the OPIC inve.d.igat,ons. The corporation would not be entitled to a payoff on its S92.6 million claim if OPIC should find that 1-1"1"s COV- Olt political activities in Chile y:ere on such a s'ale 145 It) hove provoked the Iuv CC11111011t into seizure. But I 01 intriguing convcrit' of this, as the OPIC-1TT con- tract reads, is that the C0111- pany is cm itled ii full reim- bursement if it t'an prove that its activities 110re car- ried out at the request of the U.S. g?iverninc:11. And so one of lie central issues nnon which the Sen- ate hearii. ts is e\pceted to focus Is tl:e relationship be- tween Brno and top ITT ex- ecutives. Was Bree provid- plzlis and int ''ii 00111-c' to on his own or On in- structions from f.'s superi- ors in the zu:,-enc.: 'tow MO ITT acquire such elosc.. ac- cess-to the top Latin American Mtn:L.1 lcur covert operatiern,'.' If It ?: conenoy Li LI' c!'1!12c1iw:, Wily 5-1,111 :II %%till Oil'. 6i0- 1,i011 hich ?ayes in t: i4 0'11 ? e el XI% n:es in Chile have equal :ie... ecss to the sonior U.S. Intel- operative in Latin meric Former CIA Director lliehard lehns, understand- ably cnotn2h, declined to dis- cuss the case with a re- porter. lie is out of the agency and on his way to his nosy post as U.S. ambassador to Iran. "It would be Map- , ,propriatc." he said. But on Feb. 7 the Senate Foreign Relations Commit- tee, on short notice, called Helms to testify at a closed session and the matter of n"1"s relations With CIA came up. -Ile minirnized the whole episode." said a knowledgeable official. "The members didn't ready know what to ask or how to pur- sue the questioning." One high-ranking govern- ment official. who has been intimately involved in the ITT case since its irception, commented that -IT T's rela- tionship with the CIA is no mystery. If you have John .McCone on your board it gives you a certain kind of entree." John MeCone is a member Former CIA. Director) of ITrs board and was kept informed 1T1 ofticials of the developments in Chile, the corporate files revealed. On Oct. 9, 1970. ITT's vice president itIld Washington office director William Merriam filed a -personal and confidential" PICI119 to McCune. ? -Today I had lunch with our contact at the McLean agency ICI AL_ and I somma- rii.e for you the ??esults our conversation:: 'Merriam wi ate McClure. "Ile is stilt very. ?...rv ntto,it detemin:., Allen le \viten tlie COT1:11``:,01-,N1 I:Ars place 0.1. Aoortktelies continue to l.te ht,n'e to mcmhers of -lit: Armed Force!, in an .:-.empt to thefll 1-,0?10 M}l't -f tntr:sing---no snece:tts to . . no prot;- rc-s' has It-en le;, :le ill Ii, in.' to eel Amer,ca i n t?ttieff lo ((III (I in Ii Fpr !vIpp.e 200/11/28::'9A-RDP91.-009101R (11, ill- ?ThAt hOpilig that el-crthin'..! will work out all riidtt. Also, the Bank of America had at2Tood to close its doors in Santi- ago but each day keeps post- 'fold wg the inevitable. Ac, cording to my source, we must continue to keep the ressure on business." Merriam did not nan Broe in this memo, but he had been identified in other corporate exchanges as IVI"s chief CIA contact. Merriam is now in .14"Es Rome office specializing on international trade. Another lirwanny bit of ITT intelligence enterprise was displayed in a "personal anti confidential" memorandum on Sept. 17, 1970, to. Gerrity from ti.vo of tii(` company's field operat:', former: As_ sociated Footle]. Rob- ert Berrci;ez and Miami- based Ar::erican corre- spomb?nt liendrix who won zer Prize in 1993 01, I'S on the So- iviet bnildup in Cuba. , Edwi.rd Kie ." I :report od, --nni!!;..- received a messa;e front State Department oim the .green light to 1110'C 1 name of ['resi- dent .`;i K011. The messa" eas e him maximum author- ity to do ail possiole?shoil of a .Lorniulean Republic type action?to keep All lende from taking power." Typed over the message was the sentence: "W. R. Met-- riam---This should be tightly held." Korry, xvho is now Wash ington representative for the 'Association of American Publi.shers inc., is under- stood to have taken the posi- tion with various investiLta- tors of the ITT case that Bereliez and Ilendrix did not i,et their informatit from anyone in the embassy. he declines to comment On the case until the hearitL;S,, 51' hi')) he rilz,y won appe:n. a wit- Korry if.: Tenably re- ported to have taken no is- , sue :he au; hermicity of the Pcitdlez-1 lendrix wire. The record of' at- tenn,ic(i iinerveetions in the Che p(//iliC;11 e',11 S1111',Y:-? 1.1;1t. 1.11C ;11/111.0;ielle'd S11.(th hie,11iY 111:10'd Ni1, admin. OtiO600to00117-e, naluffird ,??:? ?,?1 ,??,i, Henry A. , et, Ve1.11111... ;111',1 tHdeVie1e1;11',': . Ceeti;e1111/11,.. hill Ill": : te, tr. \ (11(111)., CU' Approved For Release 2005411287:t1Alikbi:69:1-00901 000600100017-6 `... FE 3 I:, 73 ? TT:11. _ r? p e c-rr ? ? I:. oft 0 "41. "r7 I: :1 Vjk...1.1:_ LL c,./ 9 ? WASHINGTON?Since the Day of Pigs, when the United States lost its gamble under the Kennedy administra- tion to overthrow Fidel Castro, the. Cen. tral Intelligence Agency has suffered in many areas of public opinion. It has also. suffered ini?Jrnally, going thru a succession of dircctors and los- jag other key people under three Presi- dents [starting with Kennedy] who did not totally believe what the CIA reports were saying. The CIA WaS created in 1918 by the late President Truman [as the Central Intelligence. Group] from the skeleton of the wartime Office of Strategic Stud- ies. It was formed in an effort to col- lect information be spy] on other na- tions as much as they did on us. From the start, it \VaS an al.j,ency cloaked in semi-secrecy noted for genol'ating Ce- bale, //An early director, Adm, Roscoe II. -Hillenkoetter, had warned the Truman administration of the then impending Communist invasi:oi of South Force--- end apparently v.-as repldced for his accurate pi odiction by Gen. \\ alter dell Smith. Smith then grabbed hea:llines Idur;itq, the, Sun. Joseph ll. McCarthy peri,A1 by stating, rublic there was a -moral certainty" that ComrouniA .Atples had penetrated every .securi:y :::cnt'3??ill Washiw:tton. Smith did net last long at the CIA after that and was repli.ced by the. pipe-smoking Allen W. Dulles, brother of John Foster Dulles, President Eisen- hower's secretary of stale. Dulles put 7.'deCarthy down after the senator charged there were double agents oper- ating within the CIA. Pubes, .the first civilian chief of the CIA, came off as sort of a super-spy because of his exploits in the OSS dur- ing World War II. After staving off 'McCarthy, he continued to build the CIA a small agency Istartirci, ?vith 1,500 agents) to a v.-orlthvide network that began to do more than make esti- metes of what foreign powers might do. Still, the Hoover commission looked into the operations of the. agency and cmy,o up with a report ray,.:g 'it v,-;ts baling in collecting "int.:Ili,,,,ence data from behind the Iron Curtin." Mean- while, jo CIA squabbled with the hug- est :.:1)1.i