ARGENTINA: THE GRAIVER CASE - 1977/07/08

• Document Type: SPECIALCOLLECTION
• Keywords: ARGENTINA
• Keywords: ARGENTINA THE GRAIVER CASE
• Keywords: ARGENTINA WATERGATE
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 00858713
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: July 8, 1977

�
Approved for Release: 2018/09/17 C00858713
Aroentina: The Craiver Case
r r� �.7 � .
, It;
test, In April 1977 the press began carrying news of a
iirscandal often described as the 'Argentine Watergate.'
467C4amnnly referred to as the 'Graiver Case", the story
4:* revolves around the alleged relationship between Javid\
ire
.444q ar. Argentine banker of Polish -Jewish extraction who
allegedly died in a plane crash in Mexico in August 1976,
and the terrorist guerrilla group known as Montoneros. The
Montoneros originally were part of the Peronist movement:
sub - ly - and especially since tne 197i coup -- they
have been the chief subversive terrorist grour plaguing
the Argentine government. Althougn charges have not yet
been substantiated, it is alleged that Graiver received
sizable sums -- $17-$20 Mllie -- from the Montonero
organization. ma reportedly then inveszed the roney, paying
interest to the montoneros -- which helped to finance the::
guerrilla activities -- and presumably making a profit for
himself. It is assumed that the Montonero funds originated
as ransom payments for kidnap victims.
A number of Graiver family members and business asso-
ciates have been questioned by the government in connection
ovcil
Date
Ea M 77-10446
1 July 1;77
11111.11Approved for Release: 2018/09/17 C00858713
Approved for Release: 2018/09/17 C00858713_
a-
_
st.
�
41.
8: .� ; es,�:"1:"
with Graiver's operations, although the extant to which
any of them may be directly involved in the Soutanes�
scandal is not clear. One Graiver associate whom some
reports implicate in the Montonero financial affairs is
�"?.F 0�41
Jos* 1111.....boa., a former Economics Minister under Juan Peron.
Gerward, from a Polish-Jewish background similar to Graiver's,
shared soma ef Graiver's business interests and had �
reputation in soma quarters for involvement in financial
deals of dubious legality. The Argentine .government has
revested the US government for Gelbard's extradition in
connection with charges of misuse of Social Welfare funds.
Similar charges have been brought against former President
Isabel Peron and her Social Welfare Minister and adviser,
Jose Lopez-Mega.
Although it is entirely possible that the charges against
Graivar and Gelbard are essentially valid, it is also true
that their absence has made it convenient to develop the
case into a cause celebre. Extralegal financial activities
are � tacitly acceptable part of Argentina economic life,
and aid to the Montoneros was not widely regarded as reire-
hensible a few years ago.
. .�
flanks in New York and Srussels in which Graiver.bad
sizable investment; have been reported bankrupt with large
sums of money unaccounted for. rt has been rumoaJd that.
�
�
-2-
1
I.
tl
Approved for Release: 2018/09/17 C00858713
pproved for Release: 2018/09/17 C00858713
������ � ���1������
" Graiver absconded with the money and that the unidentifiable
body found in the plane crash was not his. The Graiver
bank in La Plata, the Banco Comerical de La Plate, has
been closed and its assets are being liquidated. Another
Graiver bank in Argentina, the Banco Burlingham, has been
intervened (placed under direct government supervision) but
not closed. Xere d.taiis 02 Craivses subversive OCC232it
activities are likely to cora to light shortly when the
Graiver case comes before the Argentine courts.
�
�
-3-
;: ����.�..
�
�
Approved for Release: 2018/09/17 C00858713