LOEWS REDUCES CNA BID; I.T.T. WINS CHILE CLAIM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09T00207R001000030024-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 16, 2011
• Sequence Number: 24
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP09T00207R001000030024-6
j Levitt i`/Iove Pushed
' By EiZ?EN SHA:~IAHAN
Special to i..= So:;- y~-< :'tomes
~ WASHINGTON, Nov. 4-T~.o
'Government aDencies announced
today actions aifectin~_ the In-
ternational Telephone and Tete-
~b aph Corporation, ore of them-
favorable to the company and;
lone unfavorable.
The Overseas Private Invest=~
mend Corporation, a Federali
agency, announced- that an ar-'
Ibitrator had decided that they
'2~ency must pay ail or part.
!of the comoanv's S9~-miilionl
!insurance claim, based on they
', p~cpropr+.ation of LT_T.'s Chile
Telephone Company. The exact
;amount of the award will be
!determined later.
_The Justice Department ar.-
~nounced that it had as!;ed al
Fedetai court to name a true- ~
tee to carry out the divesti-`I
ture by LT.T: of Levitt & Sons,!;
(Inc. The action was the secordi
Hof its kind in less than a week.
Bases of Dispute 3
j OPIC said that three arbi-~
trators, selected by the Amen-~
'can Arbitration Association in
conformity with a star.t'~-:'.~
pcovision of OPIC insurance
i contrasts. had :'.ecided i., `,~~c-~
of LT.T. in the dispute. ~
i The Chile Telephone Com-~
'parry was expropriated 'n 171
sand I.T.T. was en~a;ed ;~ s=t-~
.dement dlJCll;Ji0n5 lS''`?l'. il; i
Chilean Goy;ernn:nt :~~h~n in-1
form_.u_ior, b'ca-, nt.:~:ic a';ou-
: the attempts n.,. LI'. ~ 'n in-
fluence the c'ec~in~ i:, Chile.
and the Go:era r:~r.t h-~'-~ r.,.
the tali;s.
,pay the CIVIC f;^ t'~ ~m~tn ri
h1t LT. i n.at' .,.,. .. , . , -
P.]ent tD i"l; i!. ~.,__ X81'1 ~., k'~
~propriation b-r its inter.?entG~al
in tn' political a:fairs o ;.. iio;t'
'country. k
I Ile;v'?~'eC, OPIC diSal!aS4'2,d~
'the claim an a different ground:
that the ca:npany had fatted to
pro:-ide required ir~formatioa to
the insurance agency and had
failed to protect the insurer';
is terests.
Fo7.!rteea otr.er claims by the
COmpaI11e3 v4'hoS? propartl2s
were e:;propriated u;:dar thzi
~,tarsist Government' of Salve.-i
tare Allende Gossens were set-
tIed w-itiz the- Ailerde C-ovarn-;
meat and five others i`tave been'
settled with the presets Gov-'
e:..r:ent cF Chiie.
Stria; of Controversies
The Justice Department's re-'
quest that the Disrict Court in'
Hartford enforce the LT.T. di-~
vestiture agreement was mereiyii
the latest development in a;~
string of controversies foitow-!~
ing s2ttlementof a group of p
antiir.~t suits against the com-;
-pang. Documents demonstrattng~
attempted political interference
fin the case by officials up toj
;and including then-President'
i iviYOn have become public over
the las two ytars.
_ iVlr. ~Vestfall ?ave no re=_son ~
Ifor his rasignatior. aor did the.
(company. Howe'~er I.T.T. said
that no .replacement for hire'
t: Auld be named. ~
btr. Westfall had also been a
member of I.T.T.'s senior man-
~agement group the office or the'
president, consisting o[ `~Ir. Ge-'
*:een, Francis J. Dunleaw, pros-;
' id~nt, aad two other ex?c'rive i
vice presidents. itiIr. Geneer,-i
;who will be 6~ in Jaauanr andi
'who ras been chief exacu*_ive'
i
since 199-sip ed a nett' em-
,ployrnert contract 't'its ;ea;
i.hat_- .vauld_..e.Ytend his_ a.ti~ e
~ cull-time service wick I.T.T.
]until January, 1971.
Under the. consent 3~ree-
~ients, LT.T. was to be ~~r-
jmi?tad to retain control c tr.e
haL.fora Ftr.~, Insurance Ca^;_
pa , proaid?d it divested itse'.;j
of 'ou- pti?~r con:pan;es a^.3~
Sri, - ~
?a:t .,[ a ii.
:ure5-Gf tI?ay`I'1:%:!tOn Li i; is-l
__rr:C2 COn:~,an,% ?%d f ~ . CJ"t11-[
t:'! _? {'
ius:ice Da~artm~n` ita, ;o';' t~~
~?~`._'. ~ ill ~r ..~. -C? ,7:~.''.'. ', ...... ., l `
Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP09T00207R001000030024-6