FORMER CIA AGENTS - SUPPLYING TOOLS OF TERRORISM TO CHILE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09S00048R000100020061-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 16, 2011
• Sequence Number: 61
• Publication Date: January 20, 1982
• Content Type: OPEN SOURCE

Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4
By John Dingee=and Saul Landau
' WASHINGTON'-The key government wit-
ness in the cxi zinal case against two former CIA
agents accused'ofproviding terrorist. training and
.equipment to;Libya?has"-' alleged in'act interview
that the same:*agents'sold..banned'weapons and
electronic devices'to'the Chilean secret police in
1976, with the knowledge of senior CIA officials.
=The witness,. Kevia,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 is Which Co!.,Manuel Con-
treras, head of Chile's intelligence service,. DINA,
discussed his needt,for..handguns, sophisticated
electronic security equipment and_a-small? balln
.22-caliber round or, a, pellet of poison. '4
Theemeeting was organixed,.Hr1Y[acahy said, ;try j
has been-the focus of 'a-, Justice Department inve?
.tigation? into the=transfer of explosiveai timers,;
,Libyan leader. uammar='Khadafy ,,Wilsowand:
Aprar 1980 oy'a. Washingtonx-D.C.; ' ederal `grand:
jury 'for th
l:.lk
s.
. - .
e1r
ge
llleg is
Irs addition Terpil'tias:been: con ' cfed ia: ab=
.
sentia in New York -foe selling: machine guns; to '
undercover police:::detectives. 'Ha was~indicted,
tions beginning,'in,=1977' to'Uganda's';deposed
strongman:, Iii' Am4
l~i
l
's
-
`
u
cahy
account
of
thes rct
?upponract to
Chile for the fti t time broadens- the- sco of
beyond 'thetw cal.Africars:., ons de
L e:rail -riati ns;;toinclude
u
The tixningof'Contreras' meeting;in Washin
July' `.also'is:. _f "scant for ano hev. me nth
_;
assassination in Washington Sept. 2! f 76;. of. ex-
sassination ploEmotion'=in iClifIe>~ia the last
Washington.'
Letelier and:.
n Asia
OAKLAND TRIBUNE (CA)
20 January .1982
:.I~: -''?'"?,.,L..??~jp"":'La,.;'.`"'.'."-w!w-r-?.. ~,,,.r..Y.~.,,,,... ,..~.,,~..,.~?1r~,:.... 1'.: ~Ir?,
rior, to 'hisv?allege trip; to
can, wouaaii;`Roiiiii 111loffitt;
The Mulcahy- account also 1a. significant be-
cause: 'he said he-believed he, Wilson and: Terpil'
were working with th-_ full knowledge and cooper-
-ation' of the CIA. -In previous interviews, Mulcahy
has said that. he got that impression' because of
Wilsoe's's'close association_-with.`.Theodore G.
Shackley the lqo: 2: it sn i;r the'CIA.'s clandestine
'service. at the time, and with Thomas. Clines;. the
:. CIA' s' training chief' at the'time Both` agents also
have been named by another government witness.,
'Douglas-M Schlachter;ias.having?endorsed Wilson
and .Terpil's alleged' involvement= fir- terrorism
training in Libya:"
The 'CIA has consistently denied-'a ny Institu-
tionaI`recognition of Wilson and':Terpil's'.opera-
tions? and has produced- evidence= that '.It'inotifled
JusticeDepartment-and'FBI officials-inxniediate
ly. . upon learning- of their-'allegedly-illegal activi-
'ties_pv?rseas.
top CIA bfflcsals.who haverinvestlgatei
the.Wilsoit-Terpil,case have conceded-. that-. the so.;,
called ;'rogue". Yoperation was aple-:ta' flourish
'because of close relationships that continued be-
freeir- the formery.agents.. and - active:duty-- CIA
Mulcahy's account=of the Chilean arms trans
action was confirmed by documentsdrawn ?up for,
.. the,saleytand'obtained=.by the Treasury,.Departr
ment's Bureau-of-Alcohol, Tobacco. and.Fire
Thesei 'documents inicluded invoices'. and .bills' of
sale??drawn :up .bygone- of: Wilson. and..Terpil
companies, Inter-Technology,. Inc-The purchase
listed on. the document as-Renato?Sepulveda-' 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.-intellige
equipment, such as. thatlisted. oitthe:invoices and'
described by Mulcahy, ' was-prphibited'by- legisla
tion, passed: earlier in 1976' in response~ to dcnun-
' ciations-'o;, _ rampant human -rights'. olations, by
,,Chile's mllitary ~goverument" , s,E
:*'; ;-`Mulcahy' said Terpil'brought tiling. and another,
business associate.-a'.former navraL'?.:intelligen '.
F':officer; to?the. meetingion'a. rainy Friday after
moon- In 'a? northwest?:Washington;,Rouse'on, I :
hStreet- that':. he'said looked:like`,"ai=typical"CYA`,
..safebouse... He was-Introduced to=alieatryset sianj
r identified:as'Manny_';Contreras Sepulveda and al secori&Chilean whor acted as - fnterpreter,: and?
I wfiose name he does not-
Terpii.. was3'`defereotlal". to Cantesas MuI
"'cahy said. "I,had seen Frank slap: hands of state,,
on the back but-with this guy he-was:downright
espegUul,: pnrl; kept-his,voioa- doves;
CONS
_ - e Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4
 Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4
i' "'?ntrera, Mulcahy said. wanted to discus.'
thw-, tails of an "integrated security system" -
a variety of devices to secure an embassy or gov-
ernment offlce.,They. described to. him items they)
could supply, such. as card readers,. pinhole cam-
eras, telephone, bugging devices and digital scan.I
ners to monitor telex traffic.
A purchase?? order signed by Mulcahy lists
what federal investigators believe was the equip-
ment ordered by the Chileans. Among the items
were "trans-ceivers," "wireless inductor ear-
phones" and, "micro-mini microphones"--all used
in surveillance and bugging. The sale cane to
Mulcahy. said Contreras also wanted to ' ar-
range purchase of Colt "Cobra" handguns, an
easily concealable, high-quality revolver that can
,be. fitted.,with.a. silencer-A. "pro.?forma- invoice
dated July % 1976, describes the terms of sale of
1,000 Colt..Cobras and one million rounds of am-
munition ..tO Universal. Export;-with- payment of
$368,089 inrletters of credit to Inter-Technology.,
the -Wilson,Terpil firm. of - which' Mulcahy, was
president;
Another'tapic f: th& meeting;. Mulcahy- said.
was the-' device known ia= the clandestine 'a
trade. as:a?: "Parker"' an assassination weapon
disguised as a push-button pen. The device; which
is. not.; mentioned in any,,of the -documents, -,is
',capabl*_of- firfng.~'a:'single .22-caliber. bullet
"acrossPirlirncf;$able," Mulcahy said, and' can be
made,lethal-by=loading the projectile ?wiiyan=
ide compound orrother poisons.'
`Pacific rvfce correspoadenL John
Ringer specializes in national security issues. Saul
Psad:p
Approved For Release 2011/08/17: CIA-RDP09S00048R000100020061-4