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Profile: International Telephone and Telegraph (ITT)

International Telephone and Telegraph (ITT) was a participant or observer in the following events:

The NSA, working with British intelligence, begins secretly intercepting and reading millions of telegraph messages between US citizens and international senders and recipients. The clandestine program, called Operation Shamrock and part of a larger global surveillance network collectively known as Echelon (see April 4, 2001 and Before September 11, 2001), begins shortly after the end of World War II, and continues through 1975, when it is exposed by the “Church Committee,” the Senate investigation of illegal activities by US intelligence organizations (see April, 1976). (Campbell 7/25/2000) The program actually predates the NSA, originating with the Armed Forces Security Agency (AFSA) then continuing when that turned into NSA (see 1952). (Ponder 5/13/2006) The program operates in tandem with Project Minaret (see 1967-1975). Together, the two programs spy on both foreign sources and US citizens, especially those considered “unreliable,” such as civil rights leaders and antiwar protesters, and opposition figures such as politicians, diplomats, businessmen, trades union leaders, non-government organizations like Amnesty International, and senior officials of the Catholic Church. The NSA receives the cooperation of such telecommunications firms as Western Union, RCA, and ITT. (Campbell 7/25/2000) (Those companies are never required to reveal the extent of their involvement with Shamrock; on the recommendations of Defense Secretary Donald Rumsfeld and presidential chief of staff Dick Cheney, in 1975 President Ford extends executive privilege to those companies, precluding them from testifying before Congress.) (Ponder 5/13/2006) In the 1960s, technological advances make it possible for computers to search for keywords in monitored messages instead of having human analysts read through all communications. In fact, the first global wide-area network, or WAN, is not the Internet, but the international network connecting signals intelligence stations and processing centers for US and British intelligence organizations, including the NSA, and making use of sophisticated satellite systems such as Milstar and Skynet. (The NSA also builds and maintains one of the world’s first e-mail networks, completely separate from public e-mail networks, and highly secret.) At the program’s height, it operates out of a front company in Lower Manhattan code-named LPMEDLEY, and intercepts 150,000 messages a month. In August 1975, NSA director Lieutenant General Lew Allen testifies to the House of Representatives’ investigation of US intelligence activities, the Pike Committee (see January 29, 1976), that “NSA systematically intercepts international communications, both voice and cable.” He also admits that “messages to and from American citizens have been picked up in the course of gathering foreign intelligence,” and acknowledges that the NSA uses “watch lists” of US citizens “to watch for foreign activity of reportable intelligence interest.” (Campbell 7/25/2000) The Church Committee’s final report will will call Shamrock “probably the largest government interception program affecting Americans ever undertaken.” (Church Committee 4/23/1976) Shortly after the committee issues its report, the NSA terminates the program. Since 1978, the NSA and other US intelligence agencies have been restrained in their wiretapping and surveillance of US citizens by the Foreign Intelligence Surveillance Act (see 1978). Admiral Bobby Ray Inman, who will become the NSA’s director in 1977, and who testifies before the Church Committee as director of Naval Intelligence, will later say that he worked actively to help pass FISA: “I became convinced that for almost anything the country needed to do, you could get legislation to put it on a solid foundation. There was the comfort of going out and saying in speeches, ‘We don’t target US citizens, and what we do is authorized by a court.’” (Ponder 5/13/2006) Shamrock is considered unconstitutional by many US lawmakers, and in 1976 the Justice Department investigates potential criminal offenses by the NSA surrounding Shamrock. Part of the report will be released in 1980; that report will confirm that the Shamrock data was used to further the illegal surveillance activities of US citizens as part of Minaret. (Campbell 7/25/2000)
bullet After 9/11, the NSA will once again escalate its warrantless surveillance of US citizens, this time monitoring and tracking citizens’ phone calls and e-mails (see After September 11, 2001). It will also begin compiling an enormous database of citizens’ phone activities, creating a “data mine” of information on US citizens, ostensibly for anti-terrorism purposes (see October 2001).

ITT logo.ITT logo. [Source: Private Line.com]International Telephone and Telegraph (ITT) acquires three smaller corporations, prompting the US Justice Department to file suits against ITT charging that the mergers violate antitrust laws. Between 1969 and April 1971, ITT officials meet with several Nixon administration officials, including Vice President Spiro Agnew; White House aides John Ehrlichman, Charles Colson, and Egil Krogh; Cabinet secretaries John Connally and Maurice Stans; Justice Department officials John Mitchell and Richard Kleindienst; and others, in attempts to persuade the administration to drop the lawsuits. (Wallechinsky and Wallace 1981)

International Telephone and Telegraph (ITT) offers the Nixon administration $400,000 to finance the GOP’s 1972 national convention in San Diego. (Wallechinsky and Wallace 1981) President Nixon wanted San Diego as the site of the convention, but the San Diego city government has no intention of spending lavish amounts of money subsidizing a convention it does not need. The ITT contribution, privately arranged by White House and GOP officials, is key to having San Diego as the site of the convention. In early July, the Republican National Committee announces San Diego as the convention site; eight days later, the Justice Department announces that it is dropping its antitrust suit against ITT (see July 31, 1971). Shortly thereafter, Richard McLaren, the head of the Justice Department’s Antitrust Division and an enthusiastic trustbuster whose atypical decision to let ITT off the hook confuses many observers, abruptly quits the department; within days, McLaren lands a federal judgeship without benefit of Senate hearings. Syndicated columnist Jack Anderson believes the whole deal is fishy, and will write a December 9, 1971 column to that effect, but he will not learn the entire truth behind the GOP-ITT deal until months later (see February 22, 1972). (Anderson 1999, pp. 194-200)

President Nixon tells his aides H. R. Haldeman and John Ehrlichman that they will need to dun even more money out of International Telephone and Telegraph, one of his re-election campaign’s largest and most secretive donors (see 1969). ITT is embroiled in an antitrust lawsuit, and Nixon is working to get the suit settled in favor of ITT in return for secret campaign donations (see July 31, 1971). Nixon says that Deputy Attorney General Richard Kleindienst “has the ITT thing settled,” adding, “He cut a deal with ITT.” Nixon also orders that the Justice Department antitrust lawyer who is pursuing the prosecution of ITT, Richard McLaren, be given his marching orders: “I want something clearly understood, and, if it’s not understood, McLaren’s ass is to be out of there within one hour. The ITT thing—stay the hell out of it. Is that clear? That’s an order.… I do not want McLaren to run around prosecuting people. raising hell about conglomerates, stirring things up… I don’t like the son of a b_tch.” McLaren will later drop the prosecution in return for a federal judgeship (see May-July 1971). (Reeves 2001, pp. 324)

The Justice Department reaches a deal with International Telephone and Telegraph (ITT) to drop the government’s antitrust lawsuit against the corporation (see 1969). The “consent decree” allows ITT to keep some of the firms with which it has attempted to merge. Perhaps coincidentally, ITT is allowed to merge with the firms that are relatively profitable, and dispose of the companies that will lose money for the corporation (see May 13, 1971). (Wallechinsky and Wallace 1981)

Syndicated columnist Jack Anderson receives a memo written by International Telephone and Telegraph (ITT) lobbyist Dita Beard; the memo goes a long way towards proving that in return for hefty campaign contributions to the GOP, the Justice Department dropped its antitrust suit against the corporation (see 1969 and July 31, 1971). The memo, written on June 25, 1971 by Beard to ITT vice president Bill Merriam, is entitled “Subject: San Diego Convention.” Beard indicated her distress at the possibility of someone leaking the fact that ITT had quietly contributed $400,000 to the GOP for its 1972 convention in San Diego. Two of the few who know of the contribution, Beard wrote, were President Nixon and Attorney General John Mitchell. She asked whether the $400,000 should be donated in cash or in services, then wrote: “I am convinced because of several conversations with Louie re Mitchell that our noble commitment has gone a long way toward our negotiations on the mergers eventually coming out as Hal wanted them. Certainly the president has told Mitchell to see that things are working out fairly. It is still only McLaren’s mickey-mouse that we are suffering.” Anderson doesn’t know who “Louie” is, but he is sure “Hal” is Harold Geneen, ITT’s president. ITT had announced a $100,000 contribution, but the real amount is four times that. One of Anderson’s aides, Brit Hume, interviews Beard, and during a night of heavy drinking and Beard’s emotional outbursts, finds out that in May 1971, Beard had gone to a party hosted by Kentucky governor Louie Nunn, the “Louie” of the memo. Mitchell was at the party, and Beard was there to prime Mitchell as to what exactly ITT wants in return for its contribution and its assurance that it can secure San Diego as the GOP’s convention site. According to Beard, the deal was hatched between herself and Mitchell at Nunn’s party. Anderson quickly publishes a column based on the memo that causes a tremendous stir in Washington and the press. (Anderson 1999, pp. 194-200) (In his book The Secret Man, Bob Woodward will give the date for Anderson’s column revealing the Beard memo as February 19. This is apparently a typographical error.) (Woodward 2005, pp. 37) The White House will successfully pressure Beard to disavow the memo (see Mid-Late March, 1972).

Shortly after syndicated columnist Jack Anderson reveals the existence of a memo that shows criminal collusion between the Republican Party, ITT, and the Justice Department (see February 22, 1972), CIA and White House agent E. Howard Hunt visits the author of the memo, ITT lobbyist Dita Beard, to persuade her to say publicly that the memo is a forgery, or to disavow it. Beard is currently in hospital, perhaps to treat mental and physical exhaustion and perhaps to keep her away from the press. To conceal his identity during the visit, Hunt wears an ill-fitting red wig similar to one he will have in his possession during the planning for the Watergate burglary (see 2:30 a.m.June 17, 1972). (Wallechinsky and Wallace 1981; Woodward 2005, pp. 8-39) A Justice Department official will discuss Hunt’s visit to Beard with Washington Post reporter Bob Woodward in February 1973, and tell Woodward that White House aide Charles Colson sent Hunt on the mission to convince Beard to disavow the memo. The official, reading from FBI files, will tell Woodward that Colson’s testimony to the FBI was done in his office to spare him the embarrassment of having to testify before the grand jury. The FBI did not ask Colson why he sent Hunt to pressure Beard. (Bernstein and Woodward 1974, pp. 255) On March 21, Beard will deny ever writing the memo, saying, “I did not prepare it and could not have.” Beard’s belated denial, and ITT’s quick shredding of incriminating documents referencing the connections between the antitrust deal and the convention, will partially defuse the potential scandal. The FBI will publicly claim that the memo is most likely authentic despite pressure from the Nixon White House (see March 10-23, 1972). (Wallechinsky and Wallace 1981; Woodward 2005, pp. 8-39)

Special prosecutor Leon Jaworski issues a subpoena for 64 formerly secret Watergate tapes (see July 13-16, 1973). The case will be decided in the Supreme Court (see July 24, 1974). (Gerald R. Ford Library and Museum 7/3/2007) Jaworski also demands information concerning:
bullet The possible “sale” of ambassadorships to large campaign contributors (see March-April 1972);
bullet The Nixon administration’s settlement of the ITT antitrust lawsuit (see 1969);
bullet The White House’s negotiation with milk producers to artificially inflate prices in return for campaign contributions (see March 23, 1971);
bullet President Nixon’s notes on his daily news summaries;
bullet Former Nixon aide John Ehrlichman’s records on his dealings with the “Plumbers” (see July 20, 1971);
bullet Other Nixon conversations concerning the Watergate cover-up; and
bullet The location of the tape containing the 18 1/2 minute gap (see November 21, 1973) during the time when Nixon claimed the tapes were in his custody. (Reeves 2001, pp. 607)

Former Attorney General Richard Kleindienst pleads guilty to a misdemeanor charge resulting from his agreement not to pursue charges in the ITT corruption case (see 1969). Kleindienst admits to giving in to pressure from President Nixon and White House aide John Ehrlichman to drop the Justice Department’s investigation of ITT. He pleads guilty to failing to testify accurately before the Senate. The judge in the case fines Kleindienst $100 and gives him a 30-day suspended jail sentence, calling Kleindienst a man of the “highest integrity” but one who has “a heart that is too loyal.” (Stout 2/4/2000)

Barbara Jordan speaking before the House Judiciary Committee.Barbara Jordan speaking before the House Judiciary Committee. [Source: American Rhetoric (.com)]Barbara Jordan (D-TX), a member of the House Judiciary Committee, makes an eloquent speech reminding her colleagues of the constitutional basis for impeaching a president (see May 9, 1974). Jordan says that America has come too far for her “to sit here and be an idle spectator to the diminution, the subversion, the destruction of the Constitution.” Jordan reminds her colleagues that impeachment is not conviction. It proceeds “from the misconduct of public men… the abuse or violation of some public trust.” To vote for impeachment, she says, is not a vote for removing the president from office. The power of impeachment is “an essential check in the hands of this body, the legislature, against and upon the encroachment of the executive.” The framers of the Constitution “did not make the accusers and the judges the same person.… The framers confined in the Congress the power, if need be, to remove the president in order to strike a delicate balance between a president swollen with power and grown tyrannical and preservation of the independence of the executive.” It cannot become a political tool to strike against a president that a group of partisans dislikes, but must “proceed within the confines of the constitutional term, ‘high crime and misdemeanors.’” The evidence against President Nixon is enough to show that he did know that money from his re-election campaign funded the Watergate burglaries (see 2:30 a.m.June 17, 1972), and he did know of campaign official E. Howard Hunt’s participation in the burglary of a psychiatrist’s office to find damaging information against a political enemy (see September 9, 1971), as well as Hunt’s participation in the Dita Beard/ITT affair (see February 22, 1972), and “Hunt’s fabrication of cables designed to discredit the Kennedy administration.” The Nixon White House has not cooperated properly with Congress and the special Watergate prosecutor in turning over evidence under subpoena; Jordan says it was not clear that Nixon would even obey a Supreme Court ruling that the evidence must be given up (see July 24, 1974). Nixon has repeatedly lied to Congress, the investigators, and the US citizenry about what he knew and when he knew it, and has repeatedly attempted to “thwart the lawful investigation by government prosecutors.” In short, Nixon has betrayed the public trust. He is impeachable, Jordan says, because he has attempted to “subvert the Constitution.” She says: “If the impeachment provision in the Constitution of the United States will not reach the offenses charged here, then perhaps that eighteenth century Constitution should be abandoned to a twentieth century paper shredder. Has the president committed offenses and planned and directed and acquiesced in a course of conduct which the Constitution will not tolerate? This is the question. We know that. We know the question. We should now forthwith proceed to answer the question. It is reason, and not passion, which must guide our deliberations, guide our debate, and guide our decision.” (Jordan 7/25/1974)


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