ITT AND THE ALLENDE GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09T00207R001000020038-2
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 9, 2011
• Sequence Number: 38
• Publication Date: September 1, 1974
• Content Type: OPEN SOURCE

Approved For Release 2011/08/09: CIA-RDP09TOO207RO01000020038-2
WASHINGTON POST SEP 11 VA
,jack Ar.o8er,aon sort Of uprising--i}o succes 1a' We -also repot ecl on '.'arch -)
71
needed a second transmission,
date." 1c %I
Was Interr~Jional Telephon a*nl the rta~un i1.: the .3 which male it too heap^~. The
? Edward Ferry, the former j, .t;fed to eliminate Allende.) Arniy aggravated the problem
and relegrapli (ITT) 1)e hind th
I S
b
am
assador to Chile oiler We wrote that Alld hdb ddi thikl
.,-enea per- 1yemanngcer stee,
U S #_ort i,: ur.tlermine'.Ie 1 :l I tte(l the U.S. embassy virtually I milted Cuba's Fidel Castro to! v. hick made it not only too
Salvador ' !!encle's aovernrnenti I
in CHile? Consider these curl-
OUs coincidcii,:'e:s:
e On March 21, 1972, we re-
I)orted that the CIA and ITT liar'
ate economic chaos in Chiie,l Korry's reports to ITT often
hoping this would cause thi ~+tere more caindid than his re-
Chilean army to pull a coup .. ports to the State Dc.pitrtmcnti,
The CIA spent $8 million, mo,-tf *While working bar Lind the
of it on economic sabotage, t o cones with ITT ag-inst Al-
wcaken A1!eude's govi?rnnient. Icnde, Korry spoke to Allende
The coup came exactly 18 about a deal to pry off ITT and
months atiCc we reported the two copper companies in U.S.-
'CIA-ITT SCHEME. guaranteed Chilean bonds. Un-
?E'.enbc'foreAllendetookof- ilec this plain, the U.S. would
lice, we also reported, iTT sei,t have had to make good on the
a secret me.:sal;e to Iletu-y K is, bonds and would have wound
singer urr iii'; American action up paying ITT a whopping $90
to stop Ailcnde. T'lie Marxist million. But Allende turned
leader had goon Chile's election do'.vn the deal, according to
by a plurality, not a majority. ]sorry, for "ideological rca
Under irte constitution them-
more, to > Chilean congr'..: 0 We wrote a series of col
woule i? xr the final choice be. utm,s in 'tlarcli 19712, describing
tw .n .11i ado and the second how the CIA and ITT had con
h hest vote getter. The CIA s spired together to promote ChI
passed out $1,0,000 to bribe lc's economic collapse. Kis-
riembeis of the Chilean Coll- ginger personally assured us,
gress to vote againstAllende. however, that the scheme had
? ITT's links with the CIA I never been carried out. On his
were unusually strong.John:ilc-
Cone, a former CIA director,
had become an ITT director.
Among the ITT documents,
which we uncovered was art
lull[ ins emnassv III aantiago,jneavy OUt too wide for many
Chile, into the principal Cuban road,;.
canter for support of Latin- Even on highways Chid were
American liberation move- wide enough, the trucks had to
n:enls." stop for .half an hour every 90
Thr CIA had reliable infor- minutes to cool off the tires. For
[nation that the Soviet KGB under a full ]oad at 40 miles an.
was using the Cuban )C;I intelli- hour, the tires began to burn up
ice-ce. network to piomotecorn- after 9t) minutes.
munlsm and undermine delnoc- A horrified Deputy Assistant
racy in Latin America. This had Sc(?rctary Joseph Lingerie
been reported to the hush-hush vi?a, nod in an internal memo
40 committee, which approved
a!)out "the `1 1
IT'f' documents in. our posses-
sion show lie described his anti-
Allende activities to I'I'T's di-
rector of ititeinational rela-
the covert CIA activities against ,t}It. Army if we n )arrassn cnt to
purchase a truck
Allende. which cannot satisfy the. .peci-
Mvanwhile, we turned our tied load-carryintt r,:gt)ire?.
files over to Sen
Frank Church
.
,ns
ret"
. .
D-Idaho, whose Senate subcorn-
rnittoe scolded both the CIA and Yet despite his warning, the
ITT for their bizarre plottings. Army began ordering trucks
Rut because U.S. officials lied without fully testing the first
undr,roathtothesubcommittee, model. Result: the Ia.:payers
are cornmitted to Pa'' mil
'lt -
ir it li ":" "le to get lo lion for 551 trucks, arI the c',
the bo tom of the affair. We lion f o`t
high as
would still like to know what goas $2 9'utitlion.
r.-,le III played in manipulating 'file Army, in a tv:U-p::t'e
de- 'oreignpoIicy. tense e of thegoof-ridden,:-hide',
\VA'1V11 ON WASTE--The said the Vietnam expel ieruue in-
Ar?'ny i3 buying 551 dump trucks, 'ti(ced automatic transmis-
which are too weighty and too dons were cost effective. The
ceived a "cool reception from burning up after 90 =_uinutes on
the White House and State De- the read.
partment." Now we learn that The Army wound up with this
h.i`singer, after Itiiin us this, Ineohanical I rankestein be-
Oct. 9,1970, report to McCone on approved addit.ionel . CIA ex- c;:. use the brass hats insisted on
Chile declaring: "Approachespind:tures to ullderiiine the instining an :ii;!r,-n