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ORIGIN ARA-10
INFO OCT-01 ISO-00 L-02 CIAE-00 DODE-00 INR-10 NSAE-00
PA-01 RSC-01 USIA-04 PRS-01 SP-02 JUSE-00 SEC-01 SS-14
NSC-07 H-01 SCA-01 SNM-02 DEAE-00 EB-03 TRSE-00
COME-00 EUR-10 DRC-01 /072 R
66604
DRAFTED BY ARA/CEN/CR:DCLARE:HLB
APPROVED BY ARA/CEN:DAVID LAZAR
--------------------- 074384
R 091550Z OCT 74
FM SECSTATE WASHDC
TO AMEMBASSY SAN JOSE
UNCLAS STATE 222376
C O R R E C T E D C O P Y (OMISSION OF TEXT)
E.O. 11652: N/A
TAGS: PFOR, CPRS, CR
SUBJECT: VESCO EXTRADITION EFFORT QUESTIONED
1. TAKEN FROM THE WASHINGTON POST, TUESDAY OCTOBER 8, 1974.
QUOTE BEGIN:
NEW COSTA RICAN LAW HELPED FUGITIVE
COSTA RICAN PRESIDENT DANIEL ODUBER HAS CHRGED THAT
THE US GOVERNMENT'S ATTEMPT TO BRING BACK FUGITIVE FINAN-
CIER ROBERT L. VESCO FOR TRAIL WITH TWO FORMER NIXON CABINET
MEMBERS WAS ARRANGED "IN SUCH A WAY THAT IT SEEMED AIMED AT
THE EXTRADITION FAILING, JUST AS IT DID."
THE CHARGE IS IN A LETTER ODUBER, WHILE PRESIDENT-
ELECT, SENT TO VESCO ON MAY 6. SEN. HENRY M. JACKSON
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(D-WASH.) DISCLOSED IT YESTERDAY AT A HEARING OF HIS
SENATE PERMANENT INVESTIGATIONS SUBCOMMITTEE ON EFFORTS BY
VESCO TO ACQUIRE SOME 2,000 INGRAM M 10 MACHINE GUNS AND ON
THE FINANCIER'S REPORTED INTEREST IN FUNDING A FACTORY IN
COSTA RICA TO PRODUCE UP TO 500 OF THESE OR OTHER WEAPONS A
MONTH.
AFTER SUBCOMMITTEE INVESTIGATIONS LEARNED OF THE
EXISTENCE OF THE LETTER, THE COSTA RICAN EMBASSY HERE
AUTHENTICATED IT AND PROVIDED A COPY WHICH THE LIBRARY OF
CONGRESS TRANSLATED FROM SPANISH INTO ENGLISH.
ODUBER WROTE THE LETTER A WEEK AFTER A JURY IN NEW
YORK CITY ACQUITTED FORMER ATTORNEY GENERAL JOHN N.
MITCHELL AND FORMER COMMERCE SECRETARY MAURICE H. STANS ON
ALL NINE COUNTS OF CRIMINAL CONSPIRACY, OBSTRUCTION OF
JUSTICE, AND LYING TO A GRAND JURY IN CONNECTION WITH A
SECRET 200,000 DOLLARS CASH CONTRIBUTION WHICH VESCO HAD
MADE TO PRESIDENT NIXON'S RE-ELECTION CAMPAIGN IN 1972.
CHIEF PROSECUTOR JOHN R. WING, TELLING REPORTERS
AFTER THE ACQUITTAL ON APRIL 28 THAT THE VERDICT HAD
STUNNED HIM, SAID, "IF WE COULD HAVE GOTTEN VESCO BACK
IT WOULD HAVE BEEN DIFFERENT."
THE PROSECUTION HAD ASKED COSTA RICA TO EXTRADITE
VESCO FOR TRAIL FOR OBSTRUCTION OF JUSTICE. BUT THE
LEGISLATIVE ASSEMBLY, CONTOLLED BY THEN-PRESIDENT JOSE
FIGUERES, WHOSE BUSINESS INTERESTS HAVE RECEIVED MORE
THAN 3.5 MILLION DOLLARS FROM VESCO-ASSOCIATED SOURCES,
ENACTED ON MARCH 21 A NEW EXTRADITION LAW THAT SEEMED
TAILORED TO VESCO'S LEGAL NEEDS.
FOR SEVERAL MONTHS, HOWEVER, THE JACKSON SUB-
COMMITTEE HAS BEEN TROUBLED ABOUT WHETHER VESCO MIGHT
HAVE COMMITTED AN OFFENSE-INVOLVING NARCOTICS- FOR WHICH
HE COULD HAVE BEEN EXTRADITED DESPITE THE NEW LAW, UNDER
A CENTURY-OLD AMERICAN-COSTA RICAN TREATY.
THIS POSSIBILITY AROSE ALMOST A YEAR AGO WHEN AN
UNDER COVER GOVERNMENT NARCOTICS WORKER, FRANK PEROFF,
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PROVIDED THE SUBCOMMITTEE AND THE OFFICE OF THE U.S.
ATTORNEY IN NEW YORK WITH TAPE RECORDINGS OF HIS CON-
SMUGGLING SCHEME, CONRAD BOUCHARD OF MONTREAL.
IN TAPED CONVERSATIONS ON JULY 3 AND JULY 8, 1973,
BOUCHARD TOLD PEROFF THAT VESCO OR AN ASSOCIATE IN COSTA
RICA, NORMAN P. LEBLANC, WOULD PROVIDE 250,000 DOLLARS
TO BUY 100 KILOGRAMS OF HERION IN EUROPE-FOR EVENTUAL
SMUGGLING INTO THE UNITED STATES, WHERE THE DRUG WOULD
HAVE A MULTIMILLION-DOLLAR STREET VALUE.
THAT BOUCHARD SAID SUCH THINGS IS UNQUESTIONED, BUT
VESCO AND LEBLANC DENY THAT WHAT HE SAID WAS TRUE.
THEIR INVOLVEMENT HAS BEEN NEITHER PROVED NOR DISPROVED
BY THE SUBCOMMITTEE, DESPITE A LENGTHY INVESTIGATION IN
WHICH IT TOOK SWORN TESTIMONY FROM PEROFF AND NUMEROUS
FEDERAL OFFICIALS, INCLUDING PROSECUTOR WING.
YESTERDAY, JACKSON SAID THE TESTIMONY INCLUDED A
DISCLOSURE THAT AN ATTEMPT IN DECEMBER, 1973, TO
EXTRADITE VESCO FROM THE BAHAMAS-ON A 50,000 DOLLAR
FRAUD CHARGE INVOLVING HIS INTERNATIONAL CONTROLS CORP.-
ALSO HAD FAILED.
THE BAHAMIAN LAWYER RETAINED BY THE GOVERNMENT TO TRY
TO EXTRADITE VESCO WAS CECIL WALLACE-WHITFIELD, WHO "HAD
PREVIOUS TIES TO VESCO ENTITIES AND ASSOCIATES," JACKSON
SAID. HE DIRECTED HIS STAFF TO LOOK INTO BOTH EXTRADITION
EFFORTS.
PRESIDENT ODUBER, IN THE LETTER TO VESCO, TOLD THE
FINANCIER THAT WITH THE FIGUERES ERA ENDED, HE WOULD RE-
MOVE ANY OFFICIAL WHO MIGHT BECOME A PARTNER OF THE
FINANCIER AND WOULD "ASK YOU TO LEAVE THE COUNTRY."
ODUBER ALSO SAID HE WAS GIVING VESCO 30 DAYS TO
LIQUIDATE HIS INVESTMENTS IN "MYSTERIOUS ACTIVITIES" AND
RE-DIRECT THE FUNDS INTO FARMING OR TOURISM.
ODUBER ALSO SAID THERE WOULD BE NO MORE SPECIAL
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CUSTOMS AND IMMIGRATION TREATMENT-AN APPARENT REFERENCE
TO THE TRANSPORTING OF 14 AUTOMATIC RIFLES INTO COSTA RICA
ABOARD A JET OWNED BY LOS ANGELES STOCKBROKER THOMAS P.
RICHARDSON, AN INTIMATE OF VESCO.
IN TESTIMONY YESTERDAY, JAY POWELL COOK SAID ONE
REASON HE QUIT AS SKIPPER OF A VESCO YACHT WAS HIS FEAR
THAT THE VESSEL WOULD FIRE ON PURSUERS-INCLUDING
AMERICAN SHIPS.
END QUOTE
2. SIMILAR, BUT MORE ACCURATE, VERSION ALSO APPEARED IN
NYT ON 10/8. INGERSOLL
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