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• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73-00475R000100820002-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 27, 2016
• Document Release Date: January 17, 2014
• Sequence Number: 2
• Publication Date: July 26, 1967
• Content Type: OPEN SOURCE

STAT
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/01/17: CIA-RDP73-00475R000100820002-5
NEWS
26 JUL 1967
CIA Ties AlIegecil
n
773 r tflfl ?
By JULIAN MORRISON
A boarding house cpertor has
sued a Washington-based labor
organization, reportedly having
close financial ties with the Cen-
tral Intelligence Agency, for an
alleged breach of contract she
says cost her $90,000.
The suit was brought by Mrs.
Louise Cossetti, an Italian immi-
grant who operates boarding
houses in the 2000 block of
201h-st- nw and at 3866
Wyorning-av nw, :against the
American Institute for Free' La-
bor Development of 1925 K-st
nw.
Her complaint, filed in U.S.
District Court here, says A1FLD
contracted with her in Novem-
ber, 1963, to house a maximum
of 25 Latin American "students"
in her boarding houses during
.all but 10 weeks of 1964.
A letter from AIFLD to Mrs.
Cossetti shows' that, the Institute
reserved the right to terminate
the contract if her services
should not be "reasonably satis-
factory.'
But, she said, the contract
was abruptly canceled in Jply,
1964, by the labor organization
altho its officials admitted in
writing that difficulties had ari-
sen "really thru no fault of
yours."
The "s tudent s" housed by
Mrs. Cossetti were said, to be
young South American labor
leaders brought to this country
to be trained by the AIFLD. It
has been charged, however, that
they were, in effect, turned into
trained CIA agents during their
schooling here.
Last year, United Auto.Work--
ers Union International Affairs
director. Victor Reuther charged
.AIFLD with being a CIA front
Vorganization, a charge that has
been heatedly denied by AFL-
.
CIO president George 3.Ieany,
who is listed in Mrs. Cossetti's
suit as a defendant.
(Some labor union observers
said Mr. Reulher's accusation
might be an attempt to embar-
rass Mr. Meany and his foreign
policy advisor, Jay Lovestone,
since Mr. Reuther and his broth-
er, Walter, have long disagreed
with the union's foreign affairs
activities.)
(Supporters of AIFLD say
that it is financed soley con-
tributicns from business firms,
labor unions and the Agency for
Internatioal Development.)
Altho Victor Reuther could not
be reached for comment yester- ?
day, he was quoted earlier this'.
year as saying that the CIA's
alleged involvement. with the
AIFLD is "a lot bigger story"
than the disclosures last winter .
that i he spy agency had been
supporting various student'
groups here and abroad.
in her suit, Mrs. Cossetti said:
the AIFLD promis.e to rent her
boarding house caused her to go
to great expense to fix it up and
hire a staff, including a bi-
lingual waitress for the dining
room.
The labor . organization, she
said, even spelled out that its
"students" woud attend courses
held three times a year and that
she might be expected to house
smaller numbers of students
taking part in 'special courses"
from time to time "while the
main groups are in recess." She .
also said AIFLD told her that.
"during each one of the courses
the students will -go away for
one or tWo weeks for a :field
trip."
But, apparently, things went
badly from the -beginning, be-
cause before half the contract_
had run out, Mrs. Cossetti re-
ceived a letter cancelling it..
o
The letter said, in part, ''We
have tried an experirnent where
we thought that we could prop-,
erly feed and house the students
with a minimum of problems.
"Because of the various die-
tary customs of the different'
countries represented by our
students, we have had many
complaints, (hut) really thru no
fault of yours," the termination
letter said.
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/01/17 : CIA-RDP73-00475R000100820002-5 ?