FUTURE OF OPIC SEEN AT STAKE IN ITT INSURANCE INQUIRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000300100039-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: September 12, 2005
• Sequence Number: 39
• Publication Date: October 9, 1972
• Content Type: NSPR

Approved For Release 2005/11/21 : CIA-RDP75B00380R000300100039-0
THE WASHINGTON POST ~o Z
DATE 'q , PAGE
By Marilyn Berger whether this relieved OPIC of
washlnuton Post staff writer any liability to ITT.
Sen. Frank C b u r c h (D- At the same time Church
Idaho) has launched a two. has requested Elmer B. Staats,
pronged effort to investigate Comptroller General of the
the handling of the unsettled
$92.5 million International. Tel. General Accounting Office, to
ephone and Telegraph Corp. OPIC, undertake full would review
include
claim for government-sport- OPIC's procedures in investi.
sored insurance resulting gating the ITT claim.
from the expropriation of its
properti.cs in Chile. Lurking behind the ques.
Church, who heads the tions being posed by Church is
newly created Senate Foreign the congressional power of the
Relations subcommittee on purse that could withhold
multinational corporations is funds from the agency if r!
trying. to determine whether made payments to ITT after)
any investigation has been
made of ITT's political and
economic activities in Chile
and whether the corporation
in any way "provoked" the ex.
propriation of its holdings.
ITT's claim . became "ma-
ture" on Sept. 29 in accordance,
with the contract with the gov-
ernment-sponsored Overseas
Private Tnvestinent Corp.
which requires that the expro-
prial.ory action must continue
fora year.
Following the Chilean take.
over alleged that the corpora-
tion had attempted to prevent
the 1970 election of Chilean
President Salvador Allende
and subsequently sought cov-
ert U.S, government assistance
to Prevent his inauguration.
In a lctt;er dated Sept. 20,
Church asked OPIC's Presi
dent Bradford Mills. a series of
four questions ' concerning
TTT's claim, specifically to de-
termine whether the govern-
incnt-funded insurance com-
pany has carried out an inves-
tigation to determine whether
the alleged activities of ITT
executives in Chile cbustitu-.
tell a "provocation" leading to
expropriation of the proper.
ties. Church also has asked
insufficient investigation.
OPIC requested an $85 million
appropriation for the next fis-
cal year, which Congress has
already cut in half.
Also looming in the back-
ground is the possibility that
ITT could invoke a curious
clause in the insurance con-
tract that absolves the corpo-
ration from responsibility for
"provoking" a takeover if that
action was "taken in compli-
ance with a specific request of
the government of the United
States of America."
What Church appears to be ,
trying to determine is whet her
the threat of such a defense,
which would obviously be very
embarrassing to the govern-
ment, in any way influenced
the investigation of the claim.
Additionally, there is the
still unexplained tentaiive ITT
subsidy to the Republican na-
tional convention and its al.
leged connection to the settle-
ment of antitrust cases against
the conglomerate corporation.
This has raised' questions
about ITT.'s links with the
present administration.
Under ITT's contract with
OPIC, the insurer has six
months after the claim be-
comes mature to make a deter.
mination on whether to pay it.
ITT has repeatedly told its
IstOckiolders that it antici-
' pates to recover losses, In its
second quarterly report this
year, ITT stated:
"Subsequent to the corpora.
tion's recording the claim for
See,OPIC, A34, Col. 1
Apprdveb For Release 2005/11/21 : CIA-RDP75B0038OR000300100039-0
 Approved For Release 2005/11/21 : CIA-RDP75BO0380R000300100039-0
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