Hoge^f en

THE MICHIGAN DAILY

Tuesday, May 11, 1976

Japanese official charged Soviets blame U.S.
in Lockheed payoff scandal for acts of terrorism

TOKYO, Japan 1) - Yoshio
Kodama. alleged kingsnin in the
Japanese part of the Lockheed
scandal, was charged vesterday
with violating Japan's foreign
exchange law. The indictment
was added to tax - evasion
charges lodged earlier against
the right-wing power broker.
In the Netherlands, the daily
newspaper Algemeen Dagblad

reorted that a government com-
mission has c I e a r e d Prince
Bernhard of allegations that he
recei'ed $1.1 million in Lock-
h-ed bribes.
BUT ACCORDING to the pa-
per, the panel found that Bern-
hard, husband of Queen Juliana,
must have known that his asso-
ciates were getting payoffs. A

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Dutch government spokesman
said the commission's report
had not been received yet and
he could not confirm the news-
paper account.
The new indictment against
Kodama said he failed to get the
required permission under Ja-
pan's foreign exchange regula-
tions to receive $1.47 million in
May 1973 from John Clutter,
former president of Lockheed's
Japan office. Conviction on the
charges could bring a maximum
prison term of three years..
In March, K o d a m a was
charged with failing to pay up
to $2.8 million in taxes on in-
come from secret Lockheed pay-
ments.
KODAMA, 65, is the only man
charged so far in connection
with investigations into some $12
million that Lockheed reported-
ly paid out in Japan to promote
the sales of its planes to the
Japanese air force and All-Nip-
pon Airways.
Investigators and opposition
politicians are trying to deter-
mine whether Kodama passed
any money on as bribes to Japa-
nese government officials. The
issue has become a major weap-
on in efforts by opposition par-
ties to unseat Prime Minister
Takeo Miki.
Observers agree thatKodama,
described by Lockheed as a
s a e s representative, wielded
sufficient behind-the-scenes po-
litical power to influence aircraft
sales even w i t h o u t bribing
others.
BUT LOCKHEED executives
testified before a U.S. Senate
subcommittee in February that
of the $12 million spent on pro-
motion efforts in Japan, more
and $2 million to unidentified
Japanese government officials.
Lockheed payoffs have also
been reported to officials in the
Netherlands, Italy, West Ger-
many, Colombia and other coun-
tries.
Disclosures t h a t Lockheed
made a practice of paying huge
bribes to foreign officials to pro-
mote the sales of its planes
have rattled governments on
several continents and led to the
resignation of the California-
based company's two top execu-
tives.
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at the UNION

UNITED NATIONS N.Y. W-
The Soviet Union accused U.S.
official.circles yesterday of 'con-
doning and encouraging" terror-
ist acts against Soviet diplomats
in the U.S.
Ambassador J a c ob Malik,
pounding the table while making
the charge in the Security Coun-
cil, brandished what he said was
a copy of a telegram threatening
his life.
Malik told the council that
"fascist Zionist mafias" have
carried out terrorist acts and
made threats of murder, ex-
plosions, hijackings and kid-
napings against the Russians in
this country "with direct con-
donement on the part of the
officials of the host country."
U.S. Ambassador Tapley Ben-
net rejected Malik's charges and
said: "To charge us officially of
complicity in and encouragement
of such acts is, I submit sir, a
statement unworthy of a repre-
sentative of a major power."
The exchange took place as
the council continued a debate
on Israeli practices in occupied
Arab territories.
"What is democracy when
people are allowed to make
threats to kidnap diplomats and
to kill them?" Malik asked.
"This is not democracy. This is
gangsterism."
He said Soviet premises in

New York have been shot at
four times, and those respon-
sible have not been punished.
The recent shooting at his
mission building while he was
inside "could be regarded only
as a direct attempt on the life
of the ambassador," he charged.
Malik also asserted that "im-
portant U.S. political figures, in-
cluding a mayor, a state gov-
ernor and senators" took part
in a demonstration May 2 call-
ing for "shedding Russian
blood." "It is evident the federal
and local authorities not only
condone but also encourage the
activities of the terrorist Zionist
groups," he said.
Bennett, the No. 2 diplomat in
the American U.N. mission
headed by Ambassador William
Scranton, said Malik's state-
ments were baseless - "and
surely he knows they are."
Malik singled out Rabbi Meir
Kahane of the radical Jewish
Defense League (JDL) as re-
sponsible for a number of ter-
rorist acts. "This holy man," he
said, "has written in an article
that a fatal attack on the Soviet
ambassador by a Jewish ex-
tremist could not be stopped if
the person does not fear the con-
sequences."
"But nothing has been done,"
Malik said. "These extremists
act with impunity."

U.S. won't negotiate right
to defend Panama Canal

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1

SAN ANTONIO, Tex. (AP) -
The U.S. will retain in any trea-
ty with Panama its right to de-
fend the Panama Canal from
either internal or external take-
over, Deputy Secretary of De-
fense William Clements said yes-
terday.
Clements said the right of the
U.S. to "participate in the de-
fense of the canal is a continu-
ing right - and is fundamental
to any treaty negotiated."
CLEMENTS assailed recent
"campaign rhetoric" that im-
plied the U.S. is negotiating to
give away the canal.
"There are those now who are
publicly charging that the trea-
ty negotiations now under way
with Panama are some sort of
'giveaway' and that we are en-
gaged in them because we're
somehow afraid of threats of
force," Clements said.
"This is simply not true," he
told the Texas Association of
Insurance Agents.
FORMER California Gov. Ron-
ald Reagan, who is challenging
President Ford for the Republi-
can presidential nomination,
made those accusations in cam-

paign addresses.
"We are negotiating with Pan-
ama because it is in our own
best interest to do so. We want
to make sure the canal remains
open for the commerce of the
world and that it is efficiently
operated on a nondiscriminatory
basis at reasonable prices," he
said.
"The best way to do that is
to devolop a full partnership
with a friendly Panama.
"STONEWALLING, on the oth-
er hand, is the best way to make
sure that none of those goals is
achieved, by embittering our re-
lations with Panama," Clements
added.
He said the proposed treaty
with Panama would ensure the
security of the canal.
"It is not so much the phy-
sical presence of U.S. troops
in the Canal Zone itself that
ensures that safety as it is the
assurance that our armed forces
could and would repel any fore-
ign attack - and that right of
assurance will not change under
any proposed treaty," he said.
The cardinal is the state bird
of Illinois.

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