Prosecutors try to protect CIA secrets
Some allegations withdrawn in ITT trial
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Robert Berrellez, who in 1970 was a Latin American public relations man for
the International Telephone and Telegraph Corp., leaves U.S. District Court
in his car yesterday during luncheon recess of his perjury trial. Berrellez is ac
cused of lying in Senate testimony in an alleged effort to conceal the company's
aid to the foes of Socialist presidential candidate Salvadore Allende.
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WASHINGTON (UPI) With federal
prosecutors trying to protect national
security secrets, an ITT officer went on
trial yesterday for lying under oath to
conceal the company's efforts to in
fluence Chile's 1970 election.
Even before a jury of four men and
eight women was selected in the trial of
Robert Berrellez, prosecutors withdrew
some of their allegations to protect CIA
secrets.
Chief Prosecutor John Kotelly also
asked U.S. District Court Judge Aubrey
Robinson to prevent witnesses from
revealing sensitive information without
court approval.
Robinson did not immediately disclose
his ruling.
Berrelez, who was a Latin American
public relations officer for the In
ternational Telephone and Telegraph
Corp. in 1970, is accused of six felony
counts, centering around his alleged lies
in Senate testimony in an effort to
Mideast leaders air differences
over peace agreement's wording
By United Press International
Egyptian Prime Minister Mustafa Khalil expressed
reservations yesterday about the draft of a peace treaty with
Israel but said, "No, this is not a rejection."
The Israeli cabinet began formal study of the draft treaty in
Jerusalem. Any mention of Palestinians in the wording of the
document is a possible major cause for dissent by hardliners in
Prime Minister Menachem Begin's cabinet who do not want an
Egyptian peace treaty linked with the Palestinian problem.
"There are no major problems that cannot be solved,"
Khalil told reporters at Cairo airport, as he waited for the
arrival of Uganda President Idi Amin. "With good faith bet
ween the two parties, changes and modifications can be ac
comodated in the text."
Khalil refused to specify the government's objections, but
said some of them centered on the text itself, and others were
technical.
Khalil's statement appeared to be a slight watering down of
an official government statement earlier yesterday by
Presidential Press Secretary Saad Zaghloul Nassar who said
Egypt took a qualified favorable view. Nassar also said "some
points in the draft might require further study to make it ready
for signing."
However, in apparent belief that an eventual treaty is a
foregone conclusion, Egypt announced plans yesterday to use
part of its armed forces for civilian reconstruction and
development.
Finance Minister Ali Lutfi said public utilities and services
such as telephones, waterworks and electricity nationwide had
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conceal the company's aid to foes of
socialist presidential candidate
Salvadore Allende.
Allende had pledged to seize the
conglomerate's $l5O million in Chilean
properties if elected. .
Prosecutors say that despite denials
by ITT officials, including chairman
Harold Geneen, there is clear evidence
the company passed $250,000 to the
campaign of Allende's chief opponent,
Jorge Alessandri, in August 1970.
It was revealed in 1975 that the CIA
itself spent some $l3 million in an at
tempt to block Allende's election,
Allende won, and took over ITT's
properties before he was killed in a
palace coup.
Other CIA employees including for
mer director John McCone, who later
became an ITT director, and former
official William Broe, are expected to
testify at the' trial, and later at the
deteriorated over the years because of heavy military spen
ding throughout the three-decade conflict with Israel $5O
billion since Israel's creation in 1948.
Asked if the Egyptian reservations focused on the link
between the treaty and the larger question of an overall Middle
East peace settlement, Khalil said: "There is a formula (in the
text) about the linkage. I mean it can be worked out...
"I cannot say that we are in a deadlock or anything like
that," he said.
Asked if he expected the treaty to be initialed in mid-week,
folloWing the return of Israeli negotiators to Washington,
Khalil said: "I cannot fix a time, it all depends on how they are
going to react to our remarks." .
The remarks, he said, were relayed to the Egyptian
delegation in Washington at midnight Sunday. "They are
receiving our remarks and they will act upon these remarks,"
he said.
Nassar, in his statement, lavished praise on President
Carter for his role in eliminating differences between Egyp
tian and Israeli negotiators.
Noting the absence of any element of rejection from the
Nassar statement, the mild demand for a restudy and the
tribute to Carter, diplomatic sources in Cairo said the points
Egypt has in mind obviously do not constitute major hurdles.
In Jerusalem, Begin called a special cabinet session last
night to hear reports from Foreign Minister Moshe Dayan and
Defense Minister Ezer Weizman on the draft peace treaty
achieved in Washington.
December perjury trial of ITT senior
vice president Edward J. Gerrity Jr.
As the prosecutors build their case
against Berrellez and Gerrity, they also
are attempting to guard classified CIA
secrets, which one Justice Department
official said could seriously harm U.S.-
Chilean relations.
Berrellez, 59, who now lives in Chat
sworth, Calif., is charged with three
counts of perjury for allegedly lying to a
Senate Foreign Affairs subcommittee,
and at hearings in 1974 before the
Overseas Private Investment Corp.,
which paid insurance claims on ITT's
Chilean properties.
He also is charged with one count of
conspiracy, one count of making false
statements, and one count of obstructing
justice.
Another ITT officer, Harold Hendrix,
pleaded guilty in 1976 to a misdemeanor
charge in the same case and has
cooperated with investigators.
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