(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000600100002-2
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 19, 2016
• Document Release Date: October 18, 2005
• Sequence Number: 2
• Publication Date: August 7, 1974
• Content Type: MFR

Approved For Release 2005/11/28 : CIA-RDP91-0090'
R000600100002-2
ADMINISTRATIVE - INTERNAL USE ONLY
7 August 1974
MEMORANDUM FOR THE RECORD
On 6 Ausust 1974, Mr. John A. McCone palled from Los
Angeles to ask if I couThrlIffrerro=rro meet with
General Andrev Goodpaster at SHAPE headquarters on 5 September
1974. Mr. McCone wants to confer with General Goodpaster
about disarmament and arms control matters in preparation
for a meeting of the General Advisory Commission on Disarmament
on 27-28 Septtmber. McCone said that he had written Mr. Colby
suggesting thct the DCI briefing be up to snuff.
McCone usked how President Nixon's disclosures of
5 August affected Helms' testimony. McCone said that he
had had many queries to the effect that the President's
disclosures confirmed the suspicion that the Agency was
involved after all. McCone said that he argued the contrary
point, but would be grateful if we could furnish him a
background paper
WALTER ELDER
Chief, CIA History Staff
Approved For IMASINIZOOMOIC GIAMMIdikaNtlEt30ea(83/00002-2
MORT!, (1';77,1 YORK)
Approved For Release 2005111Y.281: CIA-RDP91-00901R000600100002-2
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(-7-1 , A
? ??
t by Bartlett's own admission. his Sent.
was based on the ITT report?in pieces
t of paraphrase. He wrote about several
occuring in Chile that he cculd not
. .
ii1JU p0:IUCS
be left to the Chileans." He did :not inform his
readers that he had a document in his possession
that indicated that Chilean polities were being left,
to the Central Intelligence Agency and FIT.
"I was only interested in the political
271;,.!ysis," Bartlett explaiiK..d in an interview.
"I didn't take seriously the 1Vashinion
description of machinations within the U.S.
government. [ThelAiipinavediforReldeasec-2006/11/28
had not been in Washington; they had been in
Ta., except- under aglutly controlled
:es. No media outlet in the country has
:ed a full-time correspondent to the
very few report on its activities, even on
basis. Except in those cases where the
to lee% some information, almost 211
.nel avoid any Contact w.httsoever with
In fact, agcney policy decrees that
nust inform their superiors immediately
;ersations with reporters.
t when Allen Dulles headed the CIA
and Cold. War anti-communism was still rampant,
two disasters hit the CIA that newspa.)ers learned
of in advance but refused to share folly with their
readers. First came the shooting eleAvn of the U-2
spy plane over the Soviet Union in 1 O. Chalmers
.Poberts, long the ll'(7.7,1:if:glon Post's diplomatic
.correspondent, coMlims in his book Fir.;t Ro2,7;i1
D rt.ft (Praeger) that he and "some other
newsmen" knew about the U-2 flights in the late
: ctikTIAD(P 1 il49941 RP 9 II,P WAQI Pggrq explains:
"Retrospectively, it seems a close question as to
whether this was the ri.tlit decision, but I thinit it
r oietvd F
? _i. 0 Z
By RF.RBERT E. ALEXANDER
At many turns in the unfolding tale of
Watergate, the role and propriety of cam-
p:aign contributions from big business. have
come under scrutiny.
The extent to which the business com-
munity did, in fact, bankroll the' Repub-
lican effort in 1972 has caused concern to
a number of election reformers. Of partic-
ular concern are allegations of large con-
tributions from maior defense contractors.
This is unquestionably a legitimate ques-
tion, but one that has frequently generated
more heat than light.
A study recently completed by the Citi-
zens' Research Foundation, a nonpartisan .
-organization, helps put the 1972 role of .
large contributors from America's board-
rooms into perspective.
The results, an extensive compilation
which goes well beyond anything prepared
to date by groups such as Common Cause
or any of the Federal agencies concerned,
do not exactly exonerate big business of
the charge of partiality. But neither do the
statistics suggest a picture as distorted as .
that presented by some of the reform!
groups.
(sr
The Citizens' Research Foundation has E
analyzed political contributions to the 1972.
campaign, in amounts of $500 or more,
that were made by officers and directors
of the 25 largest contractors for each of
-these: the Defense Department, the Atomic
Energy. Commission and the National Aero-
nautics and Space Agency. For comparison,
such contributions from the 25 largest in-
dustrial companies on Fortune magazine's
500 list were also studied as a 'control
? Ion o wn .)
The composite list totaled only 72 corn-'
panies (instead of .100) because of dupli-
cations. The General Electric Company, for,
example, appeared on all four "ter) 25"
lists. Other companies were .on two or
three. The total number of officers and,
directors of the 72 companies was 2,160.,
The saudy showed about 30 per cent.
(642 persons) of these members of the top
echelons of American business to be. large
contributors ?$500 or more. Their total
contributions approached $3.2-million. This
represents a far higher proportion of givers
than in the electorate at large. National
surveys estimate that, in a Presidential
year, perhaps 10 per cent of adults make
financial contributions.
Support for Republican candidates dom-
inated. teef the total of S3,193.000 reccirded
in the study, 32,746,000 ? 86 per cent ?
went to G.O.P. candidates or committees.
The Democrats got $398,000, while $49,000
went ei3ewhere ? to minor parties and
poll?-cal action groups. The study puts new
focus on what some critics tend to see as
a sort et' lilac contribution from the board-
room M return for Government contract
Incidentally, is actual
iving?the (:-,.t.e.7,ory of money'
Lnat ioend to have ten ilicFalbccon-
tribu:._,1 7 m cotTorate4PFPORR Ingi-21R
tegepanies were among those
having made i!egal contribu-
tions. For example, the Gulf Oil Corpora-
tion's gift of $100,000 to the Committee
to Re-elect the President was subsequently
returned. Other illegal Gulf money went to
the campaigns of Representative Wilbur D.
Mills ($15,000) and Senator Henry M.
Jackson ($10,000). Gulf's totals for this
study's purposes were $14,900 to the Re-
publicans and $10,623 to the Democrats?
till from officers and directors of the com-
pany and all perfectly legal, so far as is
known.))
The Citizens' Research Foundation broke
down the contributions from three groups ,
?officers of a company, those who are '
both officers and directors and those from
outside the company who are directors. It
is from this last group that the bulk of
campaign contribution was made to both ,
parties. ?
Some 66 per cent of the total amounts
contributed in 1972 came from the outside.
directors. Many of these men (no women)
come from the financial or legal world. In
most cases, because of position and wealth,
they serve on a number of boards, They
are far more likely to be tapped in major
fund drives.
Forty-three per cent of these outsiders, 1
for example, were contributors,' Conipare?:!
with 23 per cent of the insiders, who are.
more likely to be solely concerned with
their company's well-being. However, it is
difficult to attribute the motives of the
contributing Outsiders to any particular -
company.
- A case in point would- be .John -A. Mc-
Cone director of the Central 'hit'ellrgiiiEe.
Agency during the Kennedy and Johnson
Administrations. Mr. McCone was included
in the study because of his directorships
on the boards of the Standard Oil Com-
pany or California and the International.
Telephone and Telegraph Corporation and
his gift of $14,000 to the Nixon campaign.
However, Mr. McCone is also on the boards
of the Pacific Mutual Life Insurance Com-
pany and the United California Bank, com-
panies not included in this study.' Therefore
his interests are diverse and cannot be con-
fined to any one company.
Interesting variations emerge among the
three different groups of Government con-
tractors that were studied. The percentage
or large contributors was highest in the
group of Pentagon contractors ? 37 per
cent of their officers and directors made,
large gifts in 1972. ?
At the A.E.C. and NASA contractors,
the comparable figure was lower, about 30
per cent. The level was highest of all among
officers and directors of companies on the
Fortune _500 list, where the impact of
Government contracts could be more
diffuse.
Put another way, the level of large con-
tributions, particularly to the Republican
party, from individuals tied to defense-
contract companies is, from this evidence,
below what it is for the top-level business
community as a whole.
A point worth emphasizing- about the
eqo:,$,wvtigol#,P.AKarktA501.4*
L -3 ?
to the G.O.P. for every Si to the Democrats
is that these were not exclusively gifts
to a Presidential race (in which the im-
balance could be explained by business-
men's skittishness over George McGovem's
economic proposals). The gifts also in-
cluded money for races in the Senate and
House, wheie the Democrats have been in
control a long time. That control, and its
accompanying power over millions or dol-
lars in Federal contracts, apparently had
little impact on the natural Republican
proclivity of these businessmen. These
totals also included money for state races
in 10 states, where control at the state
level might have economic implications.
The Democratic money tended to be
spread far more thinly than the Republican
Contributions, partly because of the greater
demands from the various Presidential
primary candidates.
.An example of the kind of financial edge
Mr. Nixon had is provided by a look at the --
giving patterns of the top management of
the 25 largest Pentagon contractors. Rich-
ard M. Nixon got 86.4 per cent of all
Republican large gifts from this source;
Senator McGovern got only 3.4 per cent a
the far smaller Democratic total. An I
analysis of large gifts to Presidential con-
tenders shows that money from the officers
and directors of the big defense contractors.
was divided like this:
Nixon
$1,609,646
McGovern . ....
$ 7,450
Lindsay
S 73,000
Muskie
$ 12,125
Jackson
$ 2,327
'Humphrey
$ 2,700
? Sanford
S 1,000
Mills
S 500
The analysis discloses that, In the case
of seven companies on the composite list,
there were no large political contributions
of any kind by their officers or directors.
Five of these companies were big A.E.C.
contractors, and two were on the NASA
list. These companies were. the .Reynolds
Electrical Engineering Corporation? Holmes
& Narver, Inc., United Nuclear Corporation,
Teledyne Isotopes, Inc., Lucius Pitkin, Inc.
(A.E.C. contractors) and Grumman Aero-
space Corporation and Federal Electric
Corporation. (NASA). -
At the opposite end of the scale were 15 ?
companies where large gifts were made
exclusively to Republican causes. On this
list are some familiar names of American-
business?names such as Boeing, Sperry
Rand, Union Carbide, Dow, Goodyear,Inter-
national Harvester and Eastman 'Kodak.
And, finally, one contractor had officers.
and directors who contributed only to the
Democrats. It is the Rural Co-operative-
Power Association, from the A.E.C. list
On April 7, 1972, a new, tougher cam-
paign financing law went into effect, re-
guiding disclosure of the names of con-
tributors. The new law has since loomed
large in the tangled web of the financing
of the 1972 Presidential race.
Adoption of the disclosure law has made
it difficult to plot with precision any in-..
crease in large contributions from major
Government contractors in 1972 over the
,-11,,,e Citizens' Research
1 OhglAti
YilduNi41-kritical study in 1963
of large contributors from business. The
composite list then totaled 70 companies,
se" ss
'
s
)
10 rr. ic:74
A AlcA.t IWi P' 1-00901P000600100002-2
By Torn Wicker
? Two items from The New York.
Times:
March 8, 1974: "Secretary of State
Kissinger told a Senate committee to-
day that he would recommend a veto
of the Nixon Administration's own
trade bill if Congress refused to grant
trade concessions to the Soviet Union
because of its restrictions on the free
emigration of Jews and others."
Feb. 28, 1974: "[A high United States
official] pointed out that the Central
Intelligence Agency had rejected en
offer by the International Telephone
and Telegraph Corporation of $1 mil-
lion in September, 1970, to be spent
in Chile to defeat the Socialist candi-
date for the-presidency, Salvador Al-
lende Gossens. The offer was made
to Richard M, Helms, who was then
the -Director of Central Intelligence,
IN THE NATION
"The Chilean.
story is . .
in sad ccntrast
to Mr. Kissin er's
position
on Soviet
emigration
lf
policies.
that Government's ability to get for-
eign credit and cut off foreign aid to
it, continuing only to supply arms and
training to the Chilean military.
Thus, it was troops 'trained by the
United States and armed with Amer-
ican weapons who overthrew the Al-
lende 'Government last - ia411 and?as
now seems certain?murdered Mr. Al-
lende.
'There are numerous evidences that
the officers who ordered the bloody
couP and the later execution of 'what
appears to have been thousands -of
Chileans were encouraged in :their
planning by American supporters,
both official and unofficial. Nor did
the Nixon Administration and its em-
bassy officials in Santiago distingnish
themselves in saving the lives of ref-
ugees, including some Americans.
The Chilean story is only gradually
coming to light, but what is known is
in sad contrast to Mr. Kissinger's po-
sition on Soviet emigration policies.
He said he regards detente, as of such
overriding importance that the UMted
States must not endanger it by trying
to influence internal Soviet policies.
. On the other hand, In pursuit_ of
. what it conceived to be the national
interest, the Nixon'Administration'ap-
pears to have been d'con'siderable in-
. fluence in the opposition to, and over-
throw of, the Allende Government.
. Before that, of course, various Amer-
ican Governments had had a? hand -in
.numerous interventions (for example,
The overthrow of Guatemala's elected
? left-wing Government in the nineteen-.
fifties).
by the agency's former director, John'
A. McCone, who had become an I.T.T.
board. member."
There is no particular Connection
between these two items?except that
there is now an intensive effort in
Congress to deny most-favored-nation
trading status to the Soviet Union if
it continues to restrict the emigration
of Jess; and that there was in 1970,
and throughout his presidency, an in-
tense effort by I.T.T. and others to
prevent or destroy Mr. Allende's Gov-
ernment in Chile. But the Nixon M:
ministration that Mr. Kissinger repre-
sented throughout the period did not
threaten or disapprove the latter ef-
fort; quite the contrary.
The C.I.A. did turn down the I.T.T.
money (although nothing seems to
have been done about the scandalous
attempt by a former C.I.A. director to
bribe the agency, with private money,
to undertake interference in the in
nal politics or on couni. . But
the Nixon AdmiAPP11.9Megle CtEtRIO
? ....
. This reflects a double standard, if_
evea there was one. It is a double'
standard in the sense that American
interests (as perceived' by the Admin-
istration in power) May require inter-
vention in one country's internal af-
fairs but forbid it in another. It is an
even more deplorable double standard
in that it seems to permit interven-
tion fcr certain selfish political or eco-
nomic purposes but not for the pur-
pose of upholding human rights.
This is not necessarily to argue that
? Mr. Kissinger is altogether wrong on
the Soviet emigration question; there
is in fact much to support his position.
? Anyway, to take a stand for human
rights in the Soviet Union might seem
a bit ludicrous, since the Administra-
tion has such strong ties to Greece,
the Chilean junta, Spain, Portughl,
South Vietnam, South Korea, the Phil-
ippines and other strong-arm govern-
ments. ,
The members of Congress who are
demanding Soviet concessions on emi-
? gration, inprever, have their own dou-
ble standard; they are not so Vocal
about Chilean refugees, of whom only
eakg )0`1. TIMTH*Siir4pi R000pool 00002-2
nume other repressive govern
ments to which they annually vote
Military and other forms of aid, The ?
Jewish emigration question, after -all,
is of interest to many of them only for
obvious domestic political reasons.
Under the auspices of the Fund for .
Nev Priorities:, some of the same mem-
bers of Congress did take part the -
other day in public hearings on the
situation in Chile. That would be an
excellent place for them to show a .
mbre general concern for human rights,
?as well as for the established Amer-
ican double standard. toward those
28 FEB 1014 -
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By Martin Schram ?
Newsday Washington Bureau Chief
Washington?The Central Intelli-
gence Agency has about 200 agents
/planted in U.S. companies overseas
who are en-gaged in covert activities,
it has been authoritatively learned.
The agents are assigned to those
posts with the full knowledge and per-
mission of the companies. The CIA re-
imburses the companies for the a,gentsr
salaries and administrative expenses.
The practice is useful to the CIA,
which is known to believe that station-
ing agents abroad in other U.S. govern-
' meat agencies is often not sufficient
cover. The practice also benefits the
companies because they receive some
information about latest developments
and trends.
The names of all the conmanies and
'areas could not be learned, but it has
? been confirmed that two CIA agents
/Were working abroad under the cover
47 of Robert R. Mullen & Co., the public-
relations firm that employed former
U.--"CIA man E. Howard Hunt when he
went to work at he White House and
nhelped plan the Watergate burglary.
?ad
The Mullen firm confirmed that its
- one-man offices in Amsterdam and
Singapore were staffed by CIA agents.
Both offices were closed after Hunt's
relationship to the firm was publicized.
? Mullen's Singapore office was closed
in September, 1972, the Amsterdam
Amsterdam office in June, 1973.
Sen. Frank Church (D-Idaho), chair-
man of the Senate foreign relations
subcommittee on multinational corpora-
tions,- after being informed of the prac-
tice, said, "The subcommittee will make
an immediate inquiry, into this wit ? the
? It has long been belieVed that the.
CIA had close ties with U.S. companies
abroad, but the involvement has never
been confirmed to this extent.
In 1970, the International Telephone
? and Telegraph Corp. offered the CIA
up to $1,000,000 to help block the elec-
tion in Chile of the late Salvador Al-
lende, a Marxist. The offer was made
1-7 by John A. McCone, former director of
the CIA who had since become a board
member and consultant at ITT. The
CIA has said that it rejected the offer
and that it had no role in the military
coup last year in which Allende was
killed and his government toppled.
Because the offer \vas made by a
former CIA director, there has heen
speculation that 11 i'tviailkroviviii46;Ivi2,
Made a practice Wrrperrormihr t'fa
for private companies abroad. It is the
CIA position that the practice does
not axial, and has not existed for at
least a decade. The CIA says there is
no evidence that such a practice ever
existed, but that it has not been posi-
tively ruled out in the agency's earlier
years. The CIA maintains that it uses
only funds appropriated by Congress.
The nature of CIA relationships with
individuals and U.S. companies breaks
down into three categories:
o The CIA maintains a domestic
collection division with offices in many
cities listed in telephone books under
the name of the Central Intelligence
Agency. When the agency learns that
someone has in concerning a
foreign country, it often asks the per-
son if he is willing to come in and pass
along the information.
o The CIA has a kind of operational
collaboration, involving persons. who
work for U.S. companies but occasion-
ally exchange information with CIA
officials an a- cooperative basis. (A
?similar relationship exists between- a
:number of journaliats and the CIA.)
o A couple of hundred CIA agents
live abroad and are on the payrolls of
U.S. companies while actually gather-
ing intelligence. (Some journalists have
also been in this category, although
the CIA position is that it is stopping
the practice of having journalists on its
payroll.)
"The fact that the Mullen agency.
served as a cover for two CIA agents
abroad was first reported by CBS net-
work correspondent Dan Rather and
has been confirmed in detail by News-
day. Years ago. the CIA approached
. Mullen, now chairman. of the hoard,
paying:that it had an' ernc,rg,pcy and
...?.
wanted to station an agent in Euroae
as art employe of the public relations
firm: In what the Mullen firm con-
siders a patriotic gesture, it agreed to
have the agent work in a one-man of-
fice in Amsterdam. The firm contends
that it had a leaitimate reed for a pub-
lic-relations office in Europe for ex-
ample, because the firm has dope the
public relations for the Mormon church
for years, it handled a European tour
by the Mormon Tabernacle Choir.
In 1970, the ,CIA contacted the
Mullen firm with another emergency,
this time in Singapore. The firm RC-
Lnowlcdges that it had no legitimate
need for a Singapore operation, but
that it. nevertheless agreed and opened
a one-man office there. The CIA re-
in.axim,c1 the firm for all administrative
expenses, including. the. agent's "com-
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By Martha Angle
? Star-News Staff Writer
Former CIA Director
,--T-John A: McCone has ex-
pressed surprise and skepti-
cism at reports that E.
e/Howard Hunt Jr. directed a
spying operation on Sen.
'-Barry Goldwater in 1964 on
orders from his CIA superi-
ors.
Doubts about the report
were also voiced by Rep.
4.-Aucien N. Nedzi D-Mich.,
chairman of a CIA over-
sight committee in Congress
; which last summer conduct-
ed exhaustive hearings into
' 1 the agency's possible rela-
tionship with political
spying in the Watergate
case.
Agency officials conduct-
ed a quick check of their
files yesterday, Nedzi said,
and came up with "nothing
to substantiate this kind of
statement." Nedzi said the
CIA has promised a com-
plete search of its files on
Hunt and a further report to
him as soon as possible.
? McCone, who headed the
- Central Intelligence Agency
from November 1961 to
April 1965, said in a tele-
phone interview yesterday
that he had "never heard of
any such thing rither direct-
ly or indirectly,"
ACCORDING-to informed
sources, Hunt, who is now
serving a prison term for
his role in the Watergate
F' PF11)0 7 CIA fr.,,477P
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STAT
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?
break-in and bugging, has
told Republican investiga-
tors for the special Senate
Watergate conunittee that
he sent two operatives to
GOldwater's Washington
headquarters. during the
1964 presidential campaign
to "see what was going on."
He did so on orders from
his CIA superiors, one of
whom ? according to at
least one published report
? was stationed at the
White House, Hunt alleged-
ly told committee investiga-
tors.
S:mate sources said Hunt
told them his operatives
brought back advance cam-
paign schedules, news re-
leases and "any other infor-
mation they could obtain."
,
rs", g 1-1 taverc,,,
\,/ ii[. ))iJJ j)
LI/
Goldwater said yesterday
he was informed by uniden-
tified persons "either just
before or just after the end
of the campaign that both
the FBI and the CIA had me
under surveillance."
McCone, now a senior
executive in Is Angeles for
the International Telephone
and Telegraph Corp., insist-
ed that the CIA had "abso-
lutely no involvement what-
soever" in domestic politics
during his tenure as direc-
tor.
He expressed strong
doubt that President John-
son or anyone on his White
House staff could have or-
dered the alleged CIA
spying on Goldwater.
NEDZI said that yester-
day's quick search of files
did produce evidence that
Hunt was on medical leave
from the agency during the
latter part of 1964 ? both
before and after the election
campaign.
Tha files apparently show
Hunt, was hospitalized from
Oct. 12 to Oct. 16, and that
he was granted leave until
Dec. 8. CIA officials as-
sured Nedzi that the Hunt
file contains materials, such
as xrays and medical re-
ports, to substantiate that
the. leave of absence really
was for a medical purpose.
Nedzi's subcommittee
compiled some 270 pages of
testimony from Hunt during
?. a nine-hour period of inter-
rogration last June, at a
time when Hunt was still
under threat of a 35-year
prison sentence, and, Nedzi
recalls, "appeared to desire
to reveal everything:"
- The testimony, which has
.not been released and is
still classified, makes no
reference to any political
espionage activity in 19-54,
Nedzi said, even though
Hunt volunteered page after
page of narrative reminis-
cence about his past career.
Hunt was not, however,
asked specifically about
any domestic spying in the
1964 campaign, Nedzi said.
STAT
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15 OCT 1973.
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'A rs'N,707.7 :2-M3211.1-zerf5 CZnco gOT trmo Wa-211c-il
z..;"
STEVE WEISSMAN
San Francisco
"We are all favored with ringside seats at the battle of
the 20th century, the outcome of which will have greater
influence on the lives of our children, and their children,
than all the military conflicts of this century put together.
"I refer to the growing confrontation between the forces
of globalism led by multinational enterprise and the for-
tresses of nationalism which have, been strengthened, at
least partially, as a response to the growing impact of the
multinational corporation."
- So declared Charles W. Robinson. the young president
of Marcona Corporation, an international mining and
transportation firm, at the fifth quadrennial International
Industrial Conference (IIC), Which met during the week
of September 17 to 21 in San Francisco. Mr. Robinson's
prose was overblown, but the sentiments he expressed
were standard fare.
Sponsored by the Conference Board and the Stanford
Research Institute (SRI) and held in the luxury hotels
of Nob Hill *and the board rooms of the nearby financial
district, the IIC attracted more than 650 senior execu-
tives from the biggest banks and industrial firms in seventy
countries, along with a rich sprinkling of government and
international agency officials. David Rockefeller and
Henry Ford, California industrialists David Packard and
John McCone, Wall Street investment bankers -George
Ball and Peter Peterson led the list of American entrepre-
neurs; similar stars.brightened the roster of foreign par-
ticipants.
,"We are,. in fact, the architects and operators of the tion, the concept to be floated that a businessman who
i6-catieq. `e.stai5liSlyine,n t! m...-our..:rc.:SP:c0ive,'-:homeliirld.t,..",.':,t*S'.. Ack..:W:electe,d . rep t-sentative is sOffiehow. : ev;i1; and
ITC -Chairman Edgar' Kaiser told aPd his welcome that his. volde 'should 'not be heard on Matteis .O`f.potity,'"
embraced a member of the Eastern "establishment," as complained Walter B. Wriston, chairman of the $30 bil-
well?Dr. Jermin M. Gvishiani, deputy chairman of the lion First National City Bank.
.But the international industrialists would not be stopped
by' the newly protectionist . officials of organized labor,
"the canny bureaucrats," or "yesterday's liberals" with
"their outworn doctrine of a controlled economy." For
they?and not their critics?were the ever disturbing.
"agents of change."
"The development of the world corporation into a
truly multinational organization has produced a group Of
managers of many nationalities. whose perceptions of the
needs and wants of the human raceknow no boundaries,"
Wriston explained.
"They really believe in one world. They understand
with great clarity that the payrolls and jobs furnished by
the world corporation exceed profits by a factor of twenty
to one. They .know that iliere can be no truly profitable
markets where poverty is the rule of life. They arc a
group which recognizes no distinction because of color
or sex, since they understand with the clarity born of
experience that talent is the commodity in shortest supSTAT
ply in the world," Wall Street's biggest banker went on
Wealth overflowed: the wife of Sony president Akio
Morita was relieved of $37,000 worth of jewelry by one
unconventional entrepreneur, and the honest thieves in
the local tourist traps did almost as well.
"The meeting offers an exchange of views, infor-
mation about problems, and a place to meet people who
might later become business partners," explained Kaiser
in an interview with Ralph Craib of the San Francisco
Chronicle. "At the very first meeting, I met men from
India and learned about their aluminum problems. . .
Today, we have a $60 million aluminum and cement op-
eration in India."
There were no votes, no resolutions? no public com-
mitments at the conference--only a Si million market-
place of ideas and a unique opportunity to hear the pubik:
thoughts and chance conversations of a newly emerging:
international ruling class. The theme of this year's 11C
Was "Business Enterprise and the Public Interest," which
translated into a spirited celebration of the multinational
7corporation?"that most efficient instrument for optirniz-
ling the benefits of our finite global resources"?and a
"defiant defense against its many critics.
Multinational business was "at bay," the multinational
businessmen warned. Host countries like Chile were stag-
ing "a frontal attack," threatening expropriation and
branding the multinationals as -dangerous agents of im-
perialism." Home countries like the United States were
"nipping at their heels," threatening measures like the
Burke-Hartke bill to restrict job-exporting trade and in-
vestment?"the most retrogressive piece of legislation
since the Smoot-Hawley Tariff."
"We have even permitted, without effective contradic-
State Committee for Science and' Technology of the
USSR Council of Ministers and soil-in-law of Premier
Aleksei Kosygin..
The week produced a mix of loose talk, high society
and big business. Much like a flock of Midwestern so-
ciology professors, the graying executives sat long, sleepy
hours hearing panel loads of chosen colleagues read aloud
already distributed papers on everything from the control
of population gfowth in China?to the control of gasoline
prices, in the United States. They also exchanged prac-
tical pointers in smaller, less formal round tables, from
which the press was .excluded.
"The business types r.eally love the round tables," a
conference board official told me. "They are basically
lonely men. They generally have to guard every word.
They can't admit they don't know an answer. . . In
the round tables they can let their hair down."
In the evenings the participants "and their ladies"
supped in formal splendor in the chic restaurants- and
elegant homes of America's most cosmopolitan town.
Steve Vein, woAr rsprov5cF'orv IrC eptu pye2095/1/WCM-IR16091-
ener 1or the tOCI st
.Polo Aho, Calif. 1le is editor of the forthcoming The "Frojan
Horse: The Straiwe Politics of Foreign Aid (Ranzparts).
b0901R000600100002-2
rtnntinuod
S TA T1
ILISHIEGTON POST
Approved For Release 2005/11/28 : CIA-4R1501101R0
Chain/ors M. Roberts
(
.o. 'uDo4rai. ty
The lake-over in Chile by a military
junta 1101 ClentOnStrilled 11int OW U.S.
government in general and the Nixon
adminhttration in particular is suffer-
ing ?aim a credibility gap. Allegations
that. the coup was engineered, or at
least encouraged: by Washington
through the Central Intelligence
Agency are being made around the
world. 'Hie iithninistration. while con-
ceding that it did have ..?0111c advance
tips that the take-over was coming-, de-
nies that it had any part in the affair
and, specifically-, that the President
had heard the reports in time to do
anything about them, even if ha had
wished to do so.
The CIA starts out with several
strikes ainnsi it. After all it is well
known that the agency did en:ljneer
voup the Iimttit ;'.0VCrlinlent of
GUateliqda that it had a hand
iii Sl\'itg lie 'Sh:111 of Irmils throne in
1952; that.' it tried unsuectesstully to
topple Sulzarno's government in
Indonesia; that it was central in the fi-
asco at the Pay of Pigs; that it has
been involved in inirosions IMO COM-
00600100002-2
come to given the record, is 110
cone usinn ? and a ri..eionable
doubt abut t any official conclusion of-
(IP fered by the government.
. Perhaps not directly retitled to Chile
that the CIA has learned some lessons hut part of the Nixon bacl.clrop to his
or been reined in, it is not very easy to foreign poliJy methods It his
on their face, the curreht Cl .\ for surprises, for the quick switch, and
(lc:Ill.:11s. Maybe they are true; but just -for secrecy. Dollar devaluation, [be
initybe they are not. change in China the "Nixon
shocks" to Japan, the mining of Ilai-
Mita 11atter of the (IA; phong harbor-- even the switch to
it Pru,ident Nixon himself. When you Phase I economic controls here at
eOIl LI I Ii recold 1?'' ditt'sellthti-11`4. it home ?all testify to this style of doing
makes 'You wonder ithout 1 Ii ic business. 1V1)0 tan guess what he may
the 1116? -KcilrletlY-Nix" "ill- have in mind for Latin .-?merieta, where
pidgin cz-niclictiite :Kennedy proposed lienry Kissingcc says he wants to insti-
strengthening the anti-Castro forces. [cite new policies?
hut candidate Nixon, who then was the
N'ice President knew about the secret Integrity is perhaps the most pre-
liay of Pigs plan and. to protect the cious asset that. a government can
prospects of that invasion, he had to have. The sad fact is that in the post-
0 to the ether extreme" and -attack World War It decodes successive ad-
the lunnecly proposal as "dangerously ministrations have eaten away at gov.
irresponsible," as he himself has writ- ernmental integrity. One has only to
ten. In short, he lied to cover the ?per- recall l'resident Roosevelt and the se-
it ion, Store recently, as President, Mr.
Nixon secretly authorized the undis-
cloed bombing of Cambodia while len-
ity: the public that the United States
was not 1.1clating that country's neu-
trality. As to Laos, lie admitted Amen- ii r.Ni.von's recr-mi of
loll imoP/onnint only when forced to
do so a Senate investigation. In time ty hardly
we shoti probably hear of other similar
cases 1190' still hidden. encourages one to accept
in short. Mr. Nixon's record ofvrecii-
protestations of innocence
tidily hardly encourages OM! to itecept.
proletslittions of innocence in Chile. it
rerninclt me of Thurston the Alat=1.einn in Chile."'
who used to show ou how empty his
It. is not rery easy to sleeves were; he then proceeded to
null front themn a amazing assortment
accept the currn
et CIA of cards, searves and other parapher-
- mina o'," his trade. eret Yalta agreements, President El-
denials. .1laybe they arc senho\ver's handling of the U-2 affair,
In the ,cia:e of the Bay of Pigs .Mr. President :Kennedy's initial covert op-
; ii jltst Muybc NiN071, writing in his -six Crises," eration h
s in Indocina and the panoply
never questioned the propriety or le- of evasions liy President Johnit?on as
they are //(4.... gality of the operation against Cfistro. documenteit in the Pentagon Papers.
I tie time Air. Nixon got into the
"l 'he covert operation had lobe pro- While flottse, government integrity
tected at all costs." he t?.? rote. There is had indeed suffered.
nothing in the Nixon record to indicate Somewhere along, the line Mr, Nixon
that he has in any way- altered that became entranced with General
munist (.11111.1: st,d that It conducted .
for years a it.: yet war ii onit oh sIc\i inch il the justification Charles deGaulle's idezu 0 the
dent' Ncsotti i rt'ett'ttlit it iii in the Watergitte case fin? tryinr; to "mystique.' of high office, of holding
ti, the ; dhow. /intuition head off an FBI investigation of the , aloof from the public, of treating the
lug
public like -C lid children in a "papa the CI lexictim intiney transitetions wits es- knows best" midiner. lie ? is not the
last
entially the i_--anu.t. In short, the end first President to init. this t.?. ay; it
held ( weir, in lict. oper-
111,1?,. And ..? justifies the means whenever the end dcciii' ho be failing of thuSe chief
affecting "national seem.-- cteutik es in particular who have been
to (tto ; s !rinds ',v.., quielt,tst to ?i ran thernsek OSiii the
are clein. lin! ?ti ;Lk. ?
'ititt hunt! secturit.\ blanket. Ilut as
11(1 th:itI c?tn,?.I I In I' Pre?.,dent Nixon's aversion, to put1 ic I I I Air? Nkon II;Lsit cit it to
hit iii 0; :!1{' 1%. ' ty ?I till Ii hi to the Allemle Ii imp w i 1 i it t I iou ittIll illi
I" adininkl I SI Ilk'', nodi-
'ii
his 1,(`?` .
t., h,tori aid ,h,1{.. ?oh. , Hr in the Chilean ;H1,,,ir:
S;i1\ .1?11;(.1;!..,. economic help: vet el i(111 .11. III
(.11c01.1r:l'aql 1:(11 tala.-"VCr'
(IN ti :p A Itmaiy. 'rho American vt.it'atnt Judiing the richt or wrong of
who ;,,
(li IL I vedILAOPItIVOCITI61k't?44404I20911,112t Li) 00,066 9,60-21;c (I
0 c;111 JC line 11)3 S fAtill iii iI
a15:
tor the-e ? [WWI' Ill MO IIIheIlVer. but it all to.
. t,
itether and the only emu:lie-jun one can
. NEW YORK TIMES
?
2_0 AUG 1973
Approved For Release 2005/11/28 : CIA-RDP91-00901 000600100002-2
STK
STK
Letters to the Editor j
The Record
? To the Editor:
.1 This will refer to the Aug. 8 Op-Ed
? article by Charles Goldman in connec-
tion with I.T.T. and Chile. Mr. Goldman
refers to the report of the Church Sub-
committee on Multinational Corpora-
tions of the Senate Committee on
Foreign Relations with respect to the
activities of the I.T.T. in Chile. He
notes that (a) the Subcommittee
recognized the validity of I.T.T.'s de-
sire to communicate its concern to the
United Stales Gre.?ernment over the
policies which an Allende Government
might follow and, (b) the Subcommit-
tee Report does not allege that any-
thing illegal had been done by I.T.T.
Mr. Goldman further states that
"reasonable men may differ regarding
the precise steps to bc taken in deal-
ing with such a complex problem, but
the point remains that those steps
were only overtures and that nothing
in fact wa.-; ever done."
Mr. Goldman's selective references
to the Subcommittee's Report may
give a misleeding impression of the
Subcommittue's eon:los-ions.
Nowhere in his article, for example,
does Mr. Goldrarin specify the pre-
cise. naturo of tho. overtures that were
made by I.T.T. executives to officials
of the Uhited Stt3tns Governmnt e in
connection with Chile in ths; SUMliler
on I.T.T. Activities in Chile
and fall of 1970. This is not surprisi
in light of the content of the overtures.
Thus, accordine, to the testimony in
the hearings held by thei Subcommit-
tee, (a) Mr. Geneen, in July 1970, met
with William V. Broe, Chief of the
C.I.A.'s Clandestine Services, Western
Hemisphere Division in Washington,
D. C., and offered to assemble an elec-
tion fund for Jorge Alessandri Rod-
riguez, the conservative candidate for
President and an opponent of Mr.
Allende in the Presidential elections'
which were scheduled to be held Sept.
4, 1970. Mr. Broe rejected the offer;
(b) John McCone, former Director of `?
the C.I.A., and in 1370 a Director of
I.T.T., testified tliet (i) Mr. Geneen
told him in September 1970 that he,
Mr. Geneen, was prepared to put up as
much as a million dollars in support of
any plan that was adopted by the..
United States Government for the put-
pose of bringing about a coalition of
the oppesition to Allende in the Chilean
Congress so as to deprive Allende. of
the Presidency and, (ii) that he com-
municated Mr. CiOneell's oiler to Henry
Kissinl.ze: and Richard Helms, then Di-
rector (.:1 the C.I.A.
Based ia eel t upon this testimony,
as well a; other similar I.T.T. "over-.
tures" which emerged in the course of
the teetintony, the Subcommittee
chided that ". . . is not to be
contionod is that the highest officials
of the I.T.T. sought to eneaee the
C.I.A. in a plan covertly to manipulate
the outcome of the Ciiikan Presidential
election. In so (kiting the company
overstcpped the Iit o acceptable
corporate bAior." The Subcornmit-
tee ttritnintriti:ity propo..ci legishition
which ..as reporteci [lie Senate For-
eign Relations Con-imitten and tinsed
by Schtite that would ne it
for any Lnited Stays citizen to
provide or offer to proviLle fund.; for
any United St es Gov( rament .6,,.tency
for the plirpC,S0 of intnrvoning in or
influenning an election for publie of-
fice irt a fori:itni country.
,11.pri-t i.
r
on
Corporiqiiint
.Vith,tungtott, Aut.t. i, 19/;:i
Approved For Release 2005/11/28 : CIA-RDP91-00901R000600100002-2