15 August 2002
These documents are from the U.S. State Department, Johnson Administration, Foreign Relations 1964-1968, Volume X, National Security Policy, published 15 August 2002.
These describe attempts to arrange for continued support of The Asia Foundation after public claims its funding by the CIA had ended.
132. Memorandum From the Central Intelligence Agency to the 303 Committee/1/
/1/Source: Department of State, INR/IL Historical Files, Minutes of 303 Committee, 6/22/66. Secret; Eyes Only.
Washington, June 22, 1966.
The Asia Foundation: Proposed Improvements in Funding Procedures
The Asia Foundation (TAF), a Central Intelligence Agency proprietary, was established in 1954 to undertake cultural and educational activities on behalf of the United States Government in ways not open to official U.S. agencies. Over the past twelve years TAF has accomplished its assigned mission with increasing effectiveness and has, in the process, become a widely-known institution, in Asia and the United States. TAF is now experiencing inquiries regarding its sources of funds and connections with the U.S. Government from the aggressive leftist publication, Ramparts./2/ It is conceivable that such inquiries will lead to a published revelation of TAF's CIA connection. In the present climate of national dissent and in the wake of recent critical press comment on CIA involvement with American universities, we feel a public allegation that CIA funds and controls TAF would be seized upon, with or without proof, and magnified beyond its actual significance to embarrass the Administration and U.S. national interests at home and abroad. Some immediate defensive and remedial measures are required [2-1/2 lines of source text not declassified].
/2/Regarding a later revelation by the magazine, see footnote 2, Document 176.
[3 paragraphs (11 lines of source text) not declassified]
In the long run, we feel TAF's vulnerability to press attack can be reduced and its viability as an instrument of U.S. foreign policy in Asia can be assured by relieving it of its total dependence upon covert funding support from this Agency. In the belief that TAF contributes substantially to U.S. national interests in Asia, and can continue to contribute if its viability is sustained, CIA requests the Committee's study and attention to possible alternative means of supporting it.
[6 pages of source text not declassified]
134. Memorandum for the Record/1/
/1/Source: Department of State, INR/IL Historical Files, Minutes of 303 Committee, 8/5/66. Secret; Eyes Only. Prepared by Jessup on July 9. Copies were sent to U. Alexis Johnson, Vance, and Helms.
Washington, July 8, 1966.
Minutes of the Meeting of the 303 Committee, 8 July 1966
Mr. Rostow, Ambassador Johnson, Mr. Vance, and Mr. Helms
Mr. Bill Moyers and Mr. Cord Meyer were present for Items 1 and 2
[Here follow a list of additional participants and discussion of agenda item 1.]
2. The Asia Foundation
a. Mr. Meyer capsuled the substantial accomplishments of The Asia Foundation and the endorsements it has received throughout the years. Ambassador Johnson supported these statements. Mr. Meyer pointed specifically to the vulnerability of The Asia Foundation cover and how a gadfly publication such as Ramparts had the capability to inflict considerable damage and apparently that was their intention.
[1 paragraph (4 lines of source text) not declassified]
c. There was some discussion of the real costs of a full endowment solution. Mr. Vance felt that the sum requested was too small. The others agreed that Mr. Meyer was instructed to arrive at a more appropriate figure which could then be checked with the principals for a telephonic vote./2/
/2/[text not declassified] (Department of State, INR/IL Historical Files, Minutes of 303 Committee, 9/15/66) [text not declassified] (Memorandum to Rostow, October 6; Johnson Library, National Security File, Intelligence File, CIA Budgets & 303 Committee, Box 2) [text not declassified]
d. Mr. Meyer then went on to point out that this was only one conspicuous example of a problem which would grow larger, and he specifically mentioned the need of a new institution created by legislation and based on [less than 1 line of source text not declassified] lines which could provide general support grants to this and similar organizations whose activities are of proven value to the United States abroad.
e. He cited a speech by Eugene R. Black at the recent Wesleyan University commencement dealing with grants in aid./3/ It was emphasized that substantial private contributions and those of foundations are inhibited, if not precluded, by CIA association with such organizations as The Asia Foundation. Mr. Rostow pointed out that the CIA had many times taken up the slack when other agencies were unable to come up with funds. Mr. Meyer's suggestion was greeted with considerable interest, and Mr. Helms suggested that any committee on this subject be headed in the White House in order to give it sufficient impetus. Mr. Moyers agreed to approach Mr. Harry McPherson/4/ and urged that talks continue between Mr. Meyer, Mr. McPherson and other interested parties./5/ It was noted that although the committee would not operate under 303 aegis, its determinations and findings might well have a bearing on future proposals before the 303 Committee.
/3/A Presidential adviser on financial matters and former president of the World Bank, Black proposed the creation of an American council for education and industrial arts to manage some of the nation's overseas programs. (The New York Times, June 5, 1966, p. 38)
/4/Special Counsel to the President.
/5/In his October 6 memorandum (see footnote 2 above), Jessup also reported that progress among Moyers, McPherson, and Thomas L. Farmer (AID General Counsel) to create a new institution to deal with such funding "has been extremely slow with the press of other business."
[Here follows discussion of other agenda items.]
176. Memorandum From the Central Intelligence Agency to the 303 Committee/1/
/1/Source: Department of State, INR/IL Historical Files, 303 Committee, May 27, 1967. Secret; Eyes Only. No drafting information appears on the memorandum, which forms Tab A-1 to the proposed agenda for the May 27 meeting of the 303 Committee.
Washington, April 12, 1967.
Termination of Covert Funding Relationship with The Asia Foundation
Pursuant to the recommendations of the Katzenbach Committee, as approved by the President of the United States,/2/ the Director of Central Intelligence has ordered that covert funding of The Asia Foundation (TAF) shall be terminated at the earliest practicable opportunity. In anticipation of TAF's disassociation from the Agency the Board of Trustees on March 21, 1967, released to the American and foreign press a carefully limited statement of admission of past CIA support./3/ In so doing the Trustees sought to delimit the effects of an anticipated exposure of Agency support by the American press and, if their statement or some future expose does not seriously impair TAF's acceptability in Asia, to continue operating in Asia with overt private and official support. To date, the March 21 statement has produced no serious threat to TAF operations in Asia, and the Trustees are now prepared to attempt to acquire the necessary support for TAF to go on as a private institution, partially supported by overt U.S. Government grants. This will take time and TAF meanwhile faces the immediate problem of the need for funds during FY 1968.
/2/On February 15 President Johnson appointed a committee composed of Under Secretary of State Katzenbach (Chairman), Secretary of Health, Education and Welfare John W. Gardner, and Director of Central Intelligence Helms to inquire into the relationships between government agencies and private organizations operating abroad. The panel was established in response to press reports, particularly Sol Stern's article, "A Short Account of International Student Politics & the Cold War with Particular Reference to the NSA, CIA, etc.," Ramparts magazine, 5 (March 1967), pp. 29-39, of CIA secret funding over the years of private organizations, which became involved in confrontations with Communist-influenced groups at international gatherings. (The New York Times, February 16, 1967, pp. 1, 26) Text of an interim report, February 22, as well as the final report of the Katzenbach Committee, March 29, are in American Foreign Policy: Current Documents, 1967, pp. 1214-1217. For text of the President's statement accepting the committee's proposed statement of policy and directing all agencies of the U.S. Government to implement it fully, see Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1967, pp. 403-404.
/3/This statement is summarized and quoted in part in The New York Times, March 22, 1967, p. 15.
TAF's present resources are sufficient to sustain operations through July 31, 1967, the end of the Foundation's fiscal year. [4-1/2 lines of source text not declassified] To meet these obligations, and to allow TAF management to plan rationally for FY 1968, immediate firm commitments must be acquired on future levels and sources of support. This Agency is prepared to provide whatever assistance remains within its authority and competence to offer. To undertake further necessary action, however, the Agency requests that the Committee now designate the Agency or official to whom TAF management should look for future guidance and direction with respect to United States Government interests.
a. With the encouragement and support of CIA, and the guidance of other elements of the United States Government, the Trustees of The Asia Foundation on March 21, 1967, publicly declared that TAF is a private organization; that its Trustees have accepted funds from CIA intermediaries in the past and, by inference, can no longer do so; and that they fully intend to continue programming in Asia with support from both private and overt official sources. It is imperative that this declaration be supported by normal or near-normal TAF operations in Asia over the months ahead. [4 lines of source text not declassified] It has further authorized the Trustees to seek pledges of support from heads of private foundations and other prospective private donors; but, as a practical matter, no immediate results can be anticipated.
[4 paragraphs (22 lines of source text) not declassified]
c. The above immediate arrangements would insure the continuance of TAF programs at near-normal levels during the critical year ahead, during which time TAF Trustees and appropriate agencies of the U.S. Government can endeavor to arrange adequate permanent sources of support from private and official sources for FY 1969 and beyond. If by December 31, 1967, it becomes apparent that adequate support is not forthcoming, the Agency recommends that serious consideration be given to phasing down or terminating the Foundation.
[Here follow paragraphs 3. "Factors Bearing on the Problem," and 4. "Coordination."]
The Agency recommends that actions proposed in paragraphs one and two above be approved.
180. Memorandum for the Record/1/
/1/Source: Department of State, INR/IL Historical Files, 303 Committee, May 27, 1967. Secret; Eyes Only. Drafted on May 31.
Washington, May 27, 1967.
Minutes of the Meeting of the 303 Committee, 27 May 1967
Mr. Rostow, Ambassador Kohler, Mr. Vance, and Mr. Helms
Admiral Taylor was present for all items.
Mr. Cord Meyer was present for Item 1.
Mr. Charles Schultze was present for Items 1 and 2.
Mr. Donald Jamison was present for Item 3.
1. The Asia Foundation
a. In the discussion of the future of The Asia Foundation,/2/ the following points were made: The principals and the Director of the Bureau of the Budget felt that it was wiser to transfer [less than 1 line of source text not declassified] in its entirety in a secure manner to the Foundation's account rather than filter portions through AID or State at this time.
/2/For the CIA paper that was the basis of discussion of this issue, see Document 176.
b. Ambassador Kohler agreed that the State Department would nominate a senior official to undertake the responsibility of liaison to tide the Foundation through its difficult realignment period and set it on its path to self-sufficiency in 1969. Mr. Rostow suggested the name of Ambassador Winthrop Brown (if his new responsibilities would permit an added chore). Mr. Meyer indicated that such a person would have the full cooperation of a CIA officer thoroughly conversant with the project.
c. It was fully agreed that the Foundation was definitely in the national interest and should be protected and nurtured.
d. Mr. Schultze pointed out that in the future TAF would have to count on multifarious sources and, regardless of the results of the Rusk Committee findings, there never would be a single solution. He also indicated that, [less than 1 line of source text not declassified] a proper husbanding of resources should leave the Foundation with sufficient assets to face the future in 1969. He also wanted it emphasized that the Foundation would be competing for federal funds with other worthy causes.
[Here follow agenda items 2-5.]
209. Memorandum From the Deputy Director of Coordination, Bureau of Intelligence and Research (Trueheart) to the Assistant Secretary of State for East Asian and Pacific Affairs (Bundy)/1/
/1/Source: Department of State, INR/IL Historical Files, 303 Committee, January-June 1968. Secret; Eyes Only.
Washington, June 27, 1968.
Minutes of the Meeting of the 303 Committee, 21 June 1968
The Minutes of the Meeting of the 303 Committee, 21 June 1968, contained the following item:
"7. The Asia Foundation
a. Mr. Meyer called to the committee's attention the financial predicament of The Asia Foundation, [1 line of source text not declassified]. Mr. Rostow felt that the Board of Directors contained some movers and shakers and wondered if they had done all they could to raise money in the private sector. He also felt that both State and AID should be told of the relative high priority of this project and should not be allowed to treat it as a routine item.
b. Mr. Bohlen indicated that he would discuss the matter with William Bundy and a meeting at State had been scheduled on The Asia Foundation for Thursday, 27 June 1968./2/
/2/No record of this meeting has been found.
c. [3-1/2 lines of source text not declassified] Since State and/or AID support may or may not constitute line items in their respective budgets, this is susceptible to congressional cuts. Thus, no one can accurately predict what, if any, federal monies will be allocated; this completes the vicious circle with potential Foundation support remaining in the wings until the picture is clearer.
d. If there were deep sighs for the good old days of straight covert funding,
they were not audible due to the hum of the air conditioner in the White
House Situation Room."