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LIMITED OFFICIAL USE PAGE 01 ROME 06591 231144Z 10 ACTION EUR-12 INFO OCT-01 ISO-00 INRE-00 SSO-00 NSCE-00 USIE-00 CIAE-00 PM-04 H-02 INR-07 L-03 NSAE-00 NSC-05 PA-01 PRS-01 SP-02 SS-15 EB-07 COME-00 SAJ-01 OMB-01 SEC-01 /063 W --------------------- 070763 O R 231110Z APR 76 FM AMEMBASSY ROME TO SECSTATE WASHDC IMMEDIATE 7143 INFO DIA USMISSION NATO USCINCEUR VAIHINGEN GERMANY AMCONSUL MILAN AMCONSUL NAPLES US DOCOSOUTH LIMITED OFFICIAL USE ROME 6591 US DOCOSOUTH FOR INTAF E.O. 11652: N/A TAGS: PINT, IT SUBJECT: LOCKHEED SCANDALS: DENIAL STATEMENTS BY ITALIAN LEADERS AND SPECULATION THAT THE COMMISSION WILL SOON TRAVEL TO THE US REF: ROME 6571 1. STRONG DENIALS WERE ISSUED ON 22 APRIL REGARDING ANY INVOLVEMENT BY THREE LEADING CHRISTIAN DEMOCRATS IN THE LOCKHEED SCANDAL. 2. PRESIDENT OF THE REPUBLIC GIOVANNI LEONE. THE PRESIDENT- TIAL PRESS SPOKESMAN ISSUED THE FOLLOWING STATEMENT: "REFERENCE TO THE PRESIDENT OF THE REPUBLIC IS COMPLETELY WITHOUT FOUNDATION AND CLEARLY TENDENTIOUS". THE STATEMENT THEN ACKNOWLEDGED THE RESPONSIBILITY OF THE PARLIAMENTARY COMMISSION TO ACQUIRE AND JUDGE THE VALIDITY OF THE LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 02 ROME 06591 231144Z "CHURCH REPORT" DOCUMENTS. IN THIS VEIN THE STATE- MENT POINTED OUT THAT "THE FIRST AND ONLY REFERENCE TO THE SO-CALLED "ANTELOPE COBBLER", WHICH TRANSLATED FROM CODE IS ASSUMED TO INDICATE A PRIME MINISTER, IS IN A LETTER SIGNED SMITH DATED 28 MARCH 1969. THIS EVIDENTLY COULD NOT REFER TO PRESIDENT LEONE, WHO WAS PROME MINISTER AT AN EARLIER TIME, NAMELY BETWEEN 24 JUNE AND 12 DECEMBER 1968. ANY INFERENCES TO THE CHIEF OF STATE ARE FIRMLY REJECTED IN A CATEGORICAL MANNER AND THE TOTAL NON RELATIONSHIP OF PRESIDENT LEONE TO THE REFERRED MATTER IS CONFIRMED". 3. PRIME MINISTER ALDO MORO. THE PRIME MINISTER SAID, "I AM PROFOUNDLY SURPRISED BY THE PRESS INFER- ENCES WHICH ASSOCIATE MY NAME WITH THE PURCHASE OF AIR FORCE PLANES. I DECLARE IN THE XST CATEGORICAL MANNER THAT IN THE PERIOD WHEN I LED THE GOVERNMENT, NAMELY BETWEEN 4 DECEMBER 1963 TO 5 JUNE 1968, AND, MOREOVER, THROUGHOUT MY ENTIRE POLITICAL CAREER, I HAVE NEVER BEEN CONCERNED EITHER DIRECTLY OR INDIRECTLY WITH MILITARY PURCHASES. SPECIFICALLY, I HAVE NOT HAD ANY CONTACT, NOR HAVE I MADE ANY INTERVENTIONS, INVOLVING THE LOCKHEED COMPANY, OF WHOSE EXISTENCE I WAS EVEN UNAWARE UNTIL LEARNING ABOUT IT BECAUSE OF RECENT EVENTS. THEREFORE IN THE MOST COMPLETE WAY I REJECT ANY SUCH INFERENCE IN MY REGARD AND CONFIRM THAT I HAD ABSOLUTELY NOTHING TO DO WITH THE FACTS IN QUESTION". 4. FOREIGN MINISTER MARIANO RUMOR. MR. RUMOR MADE THE FOLLOWING DECLARATION: "REGARDING THE INDISCRE- TIONS REFERRING TO DOCUMENTS BEFORE THE (PARLIAMENTARY) INVESTIGATIVE COMMISSION ON THE LOCKHEED AFFAIR, I REJECT WITH DISDAIN THE SLANDEROUS INSINUATIONS MADE IN MY REGARD, AND DECLARE IN THE FIRMEST AND MOST ABSOLUTE FASHION THAT NEITHER INTERVENED NOR IN ANY CASE PUT ANY PRESSURE OF ANY TYPE IN FAVOR OF THE PURCHASE OF THE HERCULES AIRCRAFT FROM THE LOCKHEED COMPANY". 5. SPECULATION CONTINUES AS LEAD PRESS ITEM CONCERNING LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 03 ROME 06591 231144Z WHICH OF THESE LEADERS MIGHT BE INVOLVED. CONSENSUS DEVELOPING, HOWEVER, THAT IT IS NOT MORO AND MUST BE EITHER LEONE OR RUMOR. 6. PARLIAMENTARY COMMISSION: WILL IT BE BLOCKED IF PARLIAMENT DISSOLVED? DOES IT PLAN TO TRAVEL TO THE US? THE CHAIRMAN OF THE INVESTIGATIVE COMMISSION, ANGELO CASTELLI, STATED IN A RADIO INTERVIEW MORNING OF APRIL 23, THAT EVEN IF THE PARLIAMENT IS DISSOLVED THE COMMISSION WOULD PROBABLY CONTINUE ITS WORK AS IT IS IN FACT A JUDICIAL BODY. MOST PAPERS MEN- TION THAT THE COMMISSION WILL SOON BE GOING TO THE US TO ASK THE CRITICAL QUESTIONS OF THE MOST DIRECTLY INVOLVED LOCKHEED SCANDAL FIGURES. CASTELLI, IN THE INTERVIEW MENTIONED ABOVE, CONCLUDED THAT AN URGENT VISIT BY THE GROUP TO THE US WOULD BE APPROPRIATE AND OPPORTUNE. HE SAID: "IN THE US WE COULD DO IN THREE DAYS THAT WHICH MIGHT TAKE US THREE MONTHS IF WE REMAIN IN ITALY". COMMENT: ONCE MORE IT MUST BE STATED THAT IN ALL THIS SPECULATION AND ANALYSIS THE KEY TERMS OF THE MUTUAL ASSISTANCE AGREEMENT ARE NEVER MENTIONED.VOLPE LIMITED OFFICIAL USE NNN