SUPPLYING TOOLS OF TERROR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000201280002-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 1, 2010
• Sequence Number: 2
• Publication Date: January 20, 1982
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/07/01: CIA-RDP90-00552R000201280002-8
OAKLAND TRIBUNE (CA)
20 January 1982
By John Dinges~and Saul Landau
WASHINGTON-The key government wit-
ness in the criminal case against two former CIA
agents accused of providing terrorist, training and
.equipment to Libya has'alleged in,.'an interview
'that the same agents sold, banned 'weapons and
electronic devices' t& the Chilean secret police in
,The witness,: Kevin P. Mulcahy?'is a.former
CIA employee, himself, and. former-business as-
sociate. of the,, two -fugitive ex-agents, who- have
been under indictment since April 1980. Mulcahy
said that he attended a July 197G.'meeting in..a
Washington townhouse in )which CoI 'Manuel Con-
treras, head of Chile's intelligence service,. DINA,
discussed: his needi:for.-handguns;4'sophisticated
electronic security equipment, and:_a:._small ball-
.22-caliber round or a-. pellet of poison.
= The&rneeting was organized, MtiIcaliy said, by `
?
Frank Ei Terpil,., ha along with Edwin P. Wilson
has been,the focus of a 'Justice. Department inves
;tigation into. the-transfer of explosives timers,
- night-visiomequipment andicommando'traininglto
,Libyan leader, Muammar-;Khadafy _i;Wilson'~and
jury for their!alleged?_illegal'supp>''` operation to }
' In' addition Terpl iias been convicted ii%'`a
undercover .police detectives.He wa indicted
again this month. for alleged illegal supply opera
Aions beginning'in1977 to .Uganda's deposed
stron
man: Idi' Amos ~' } ;, Y
: n
g
~
:. , .. 4 r.
biulcahy's accoun,t'of the supply contract to'
Chile for the firstiqime broadens the scope_of Wil
son and Terpil's' alleged terrorist supply,~activities
beyond' the tworadicaLAfr?ican-"nations to. include'
the anticommunist-police?agency in'hile.
The timing, of -Contreras.. meeting n Washing?
Jon'.., which' Mulcahy recallsfitopokplace in early
July, also is significant or another, crime, - the
assassination in Washington Sept 211876, of. ex-
iled"Chilean oppositionf'leader Orlando ~I etel_ier.
According. to extensive 'evidence uncovered in"th
federal: investigation, Contrera; had-set that 'a's
sassination plot=' in `-,motion-iii, Chile?in the-'last.
week of :June, just jr rioto his Talieged trip to;
Washington. Al, 4r ;
A? federal?grandtJury.lndicted'Contreras for:
.
allegedly ordering tie:'carbombing;;thafkilled
Letelier and: ail Ame
on. WashingtonMa
governments of,,Chk l
achusetts' Avenue, I but-., the
bas selected' S. requests
`The' Mulcab
cause' he 'said h
were working w.
-ation of- the CIA
has said,that ht
Vilsdfi's'! close
Shackley~_the N
service. at. the t
have been named by another government witness,
Douglas'M:"Schlachter as' having endorsed Wilson
and -Terpil's alleged involvement in` terrorism
The CIA, has consistently denied any institu-
tional"recognition of Wilson and Terpil's.opera-
tions- and has produced evidence=that `it'=notified
Justice-Department and'F$I' officials immediate-
'
ly : upon' learning of their.~allegedly;,illegal. activi-
.But.top CIA-officials who have linvestizated,
.theWilson-Terpil.case have conceded- that the so,
called. ;`rogue" .";operation was ale tov flourish
because'-of close relationships that- continued be-.:
lWeen the former agents and active duty CIA
IVlcilcahy'saccount ofthe Chilean arms trans-
- action was confirmed by documents drawn up for
the-sale.'and obtained'-.by the Treasury:. Depart-
ment's Bureau 'of Alcohol, Tobacco . and Firearms -1
Theses documents' included invoices - and :bills:- of i
sale 'drawn =up.by