CIA File on Ray, Manuel

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# Lynch 'Up In Arms' Over 373 Illegal Machine Guns

By PHIL HANNA Staff Writer

A decision is expected today in the disposition of 373 machine guns confiscated from the Erquiaga Arms Co. in the City of Industry.

Deputy Dist. Atty. Lynn Compton said his office wanted to wait until all the evidence was available before deciding what to do.

State Atry. Gen. Thomas Lynch ordered the arms seized last Friday night because the manufacturer didn't have a state license for the possession or sale of automatic weapons.

He also charged that the weapons "were destined for the use of private armies such as Minutemen and the ultraconservative Rangers."

Troy Houghten, western area coordinator of the Minutemen, today denied his organization has purchased or contracted for any automatic weapons from the arms firm.

Yesterday the U.S. State Department denied that an export license was granted to the company to deliver the newtype machine guns to Costa Rica and the federal officials said they "have no intention of granting such a permit."

Lowell V. Knudson, who operated the plant for Juan Erqui.aka, said "the company has a large order for the machine guns for the army of Costa Rica. We wanted to have the job completed by April 1 and Costa Rica would pick up all the weapons at one time."

Knudson said "we are abiding by the Federal

Firearm Act . . . we have a federal license . . and we believe this takes precedence over everything else: "

He said he didn't obtain a state permit because "we believe we fall into an exemption in the state law."

When searching the premises last Friday, the investigators found a rifle which allegedly belonged to Terrel Eddy, leader of the National States Rights Party in California.

The attorney general said that correspondence was found indicating that Eddy's rifle was to be converted from an M-1 semi-automatic to M-14 automatic rifle.

(In San Diego, Eddy said any connection between himself and the arms company "concerned only the modification of a particular sporting rifle and at no time was there any discussion or mention of any other weapon in any form ")

Knudson called it a "publicity deal and an attempt to link us with the rightwingers.

"Anyone can send us M-1 rifles for conversion to M-14 automatics, that's

our business."

Employes of the arms manufacturer said that Erquiaga is in either Costa Rica or Guatemala and has been out of the country since Feb. 6.

He said he didn't know Eddy from any other customer of the plant.

Lynch said his office informed the gun maker last November that regardless of any federal license he might possess, state permits were needed for the manufacture, possession or sale of machine guns.

Furthermore, Lynch said, "he was informed that silencers of any sort are totally illegal in California, and there is no provision in state law for their manufacture under any circumstances."

Three silencers were confiscated during the raid.

Gun dealers in Southern California called Erquiaga and Kudson "fools" who knew that if they "kept up their practice they would be knocked over."

The machine guns confiscated by the attorney general are similar to "grease guns" used by the

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## GUNS

U.S. Army during World War II, and British Stag guns

The gun was designed by Gordon Ingram, 4223 Wilkinson Ave., Studio City.

Employees and the sheriff lff's office say that it is an "pursuiting weapon."

Last October Erquigua said he hoped to manu facture 26,000 of the machine guns in 1965, and 20,000 assault rifles as well, for sale to South American countries.

The machine guns are chambered for the 9 mm parabellum bullets, carry 32 rounds, fire 750 rounds a minute, weigh 8 pounds and combine ball and collective automatic firing. The action is inertia of "blow back" operated.