SUPPLYING TOOLS OF TERRORISM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605840013-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: January 12, 2011
• Sequence Number: 13
• Publication Date: January 20, 1982
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/01/12 : CIA-RDP90-00552R000605840013-6
OAKLAND TRIBUNE (CA)
20 January 1982
Former CIA agznts
UpDyfl
too~S ofr
~'
By John Dingea and Saul Landau - -
WASHINGTON-The key government wit-,
ness in the crir'mnal 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`to-the Chilean secret police in
I97$ with the knowledge of senior CIA officials.
:,;.. ,
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. 1976. meeting. in ,.a
Washington townhouse in }vhich Col.%Manuel Con-
treras, head of Chile's intelligence service,. DINA,
discussed his need;,for.. handguns,~ssophisticated.
electronic security equipment and :a-small ball-a
point pen-like. device capable of firing .a single;
Therneeting was organized, Mulcahy said,
by
has been-the focus of a JusticeDepaitment inves=''_
,tigation into the :transfer of explosives; timers,
night-vision: equipment and-commando?training?to,?
:Libyan leader, Muammar - Khadafy. ;Wilson ? and
.Aprir"198O' bya??1Washington D.C., "federal'grani
jury for theirpalleged` illegal'-suppl'j :'o eratiom`'to,~::
Libya ~~-f>z":rt j~Ax-i-
SZ,
sentia inNew York=for selling.machine"guns: ta--
undercover police`detectives. `Heywas.,"::indicted.
Mulcahy's account of tb'e supply contract to
Chile' for the first time broadens the scope . f Will
son and Terpil's,alleged terrorist supply,.activities
'beyond'the tworadical.!fricannations=to include'
The timing-of-Contreras' meeting;in_Washing-
July,'`also is si lficant'1or another.'crime,?Ahe
assassination' in Washington Sept. 21;:1976-, of. ex-
iled`Chilean. oppositionileader Orlaiida::'Letelier.
federal investigatiorr Contreras.; had-set that a's==
.sassination plot'-' In' motion ?-in Chile ~-in 'the Iast
:.;'A federalr'grandfririry indicted`Contreras' for;
allegedly ordering, e,' car -bombing; that, killed
Letelier and. an w, can wotan, Ronne Moffitt,
on Washington's' Ma ? chusetts -Avenue, , but:.the
government-;of, ChiI has'rejected` V S requests
,foc'his extradit od ,`; ',:=? ~s Vic' ?i
_The' Mul
cause he 'said
were'working
-ation'of-the C
has said that
Wilson's -clo
Shackley; the.
,service. at' th
CIA's-trainin
=have been named byauother government witness,
Douglas M: Schlachteras having endorsed Wilson
and.Terpil's alleged involveinent-in- terrorism
training in Libya. J`
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 'FBI' officials immediate-
ly , upon learning of their= allegedly--illegal activi-
ties overseas.
But.top CIA-officialswho have4nvestigated'
the Wilson-Terpil.case have conceded- that. the so:
called" ,rogue'. operation was aple-:to-; flourish
because of close relationships that. continued be-~
?weerr the former agents and active:-duty- CIA
officials.
Mulcahy's account of the 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
These='documents' included invoices and _bills - of,
sale 7drawn :up.-- byr;:one of Wilson' and Terpil's{
companies, Inter'-Technology,- Inc. The purchasers
listed on the document as-Renato- Sepulveda -R_ of
Universal Export Co. in Santiago, was identified;
by federal investigators as. a suspected DINA
front-organization in Chile ' *~ --" - -
The sale to Chile of arms and:'intelligence:,
equipment, such as that listed on_ the invoices and'
= `described. by Mulcahy, was 'prohibited' by legisla
tion -'passed. earlier`in 1976 :in response' to denun
ciations o .rampant - human rights bviolations . by
Chile's military government'
::'Mulcahy said Terpil'brought.him.and another,
business associate-a-, former naval intelligences
'.officer, to-the meeting`.on'a rainy Friday. after-'
`noon'in `a- northwest. : Washington' House''on R.
Street that he"said-'looked like :"a-typicalCIA!,
.safehouse." He was-introduced to=a heaVyset'man'
.,'identified as'"Manny":Contreras Sepulveda aad al
second ' Chilean'who- acted as interpreter and',
whose name he does not recall '" *s
_Terpil was. "deferential". to Contreras, ?Mul ,
'- cahy said. "I-had seen Frank slap: heads of state
on the back; but'with this guy he-was downrightt+
respectf>zl, and; kept' his': voice dowo." - -
Sanitized Copy Approved for Release 2011/01/12 : CIA-RDP90-00552R000605840013-6
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