SECRET(When Filled In)

CF CRYP TONY

PROJa T ACTION

TYPE OF ACTION OTHER

IINEW PROJECT

APPROVAL

DIVISION

Covert Action StaffAMENDMENT

NO.

'Y'AMV\SNW ,„„.P Agt.'ket ketn;\'',.NNANNCN,N,‘‘V..,VW.<, \>e \\'\% \‘‘A\ \\A\ "'■> C.*AY‘k*\‘‘ NN‘ \.\\

MEMO ATTACHED

13ENCY

flaT tc.)N

FORM 2500

APPROVALPERIOD TOTALREVISEDANT THIS ACTION FY

FROM

1 JulTO

30 June 196 8 5 10 000APPROVING AUTHORITY DATE

Deputy Director for P1 2.3 JAN 1967

SIGNATURE

•)4/. 71.1"CW3.4.14,e. e.Q.9

FORM OBSOLETE PREVIOUS

848 EDITIONS( S )SECRET

GROUP I

SECRET

CA/PEG Project Record Sheet

Initials Date

L. DC/CA/PEG C J 5 Jan Project Name: DTPILLAR

:. C/CA/PEG (signature) C --1 5 Jan Country : CA/Branch 2

1. C/CA (signature) _.] 11 Jan

DC/CA (s ignature) L 2 10 Jan Type of Action FY 1967 RenewalMPS/BG/CA

. ZIMEREIG 2 6 jrk b.-PEG EvaluationOfficer Horvath

5 . ADDP 26 JAP 937 Date Received: 14 November 1966Date Duein DDP/PG:

nteragency Coordination: On 8 July 1966, the 303 Committee strongly endorsedthe activities of The Asia Foundation in a decision to improve substantially TAF'sdomestic U. S. credentials. Normal program liaison continues with the Depart-

is,,,lawit,of State and abroad. TAT representatives continue to maintain necessaryiniriar)ii with U.S. Government officials either overtly or through the Stations,

covertly.COMMENTS:

1. DTPILLAR requests C 13 (pro gr mulled E for FY 1967to provide funds for the continuation of the activities of The Asia Foundation (TAT).Funds for the additional Zto cover the costs of a Staff Agent assigned to theproject in Vietnam are available within the CA Staff budr for FY 1967. In FY 1966,DTPILLAR was approved for C_ and obligated

2. During FY 1967, TAT continued to utilize its access and expertise tomake further significant contributions to U.S. Government and Agency goals. TATprogramming highlights during FY 1967 (pages 3, 4 and 6) include:

a. TAT advisors helped to broaden Afghanistan's marketing patterns,improve export earnings and decrease Afghan dependence upon Sovietmarkets.

b. TAF's programming and influence increased substantially withCeylon's Senanayake Government.

c. A key TAF grant, matched by a $300,000 grant from the Depart-ment of State, insured the construction of a student center at the newChinese University in Hong Kong.

d. In India TAT support to two Institutes provided training as wellas a common meeting ground for rising and established leaders.

SECRET

SECRET

e. Urban planning and government reorganization programs addedto TM". substantial program in Korea.

f. TAF's Buddhist programs in Laos, Vietnam and Thailand con-tinue to contribute to the stabilization and constructive utilization of thisimportant group.

g. In the Philippines, earlier TAT granti led to a $230,000 FordFoundation grant to a complex of colleges. Rural development programcontinued to produce improvements and a shim area program was pre-pared at the request of President Marcos.

K. Continued extensive programming with private organizations,the Chinese community and the governments in Singapore and Malaysia.

I. With the closing down of TAF's offices in Cambodia, the Cambodianstudents now in the U.S. are being handled by TAP Headquarters.

j. Disseminated 41 CS and 00 reports. Bi-monthly situation analysescontinue to be supplied to Stations, Chiefs of Missions, the Departmentof State, OCI and ONE. TAT field representatives continue to supplystations with information, bio-data and assessment of value for opera-tional and background use.

k. A series of studies in depth by TAT on the political ingredientsof Buddhism have been given limited dissemination to designated indi-viduals in Headquarters, Field Stations, State Department and The WhiteHouse.

3. In the wake of the New York Times series on the Agency, TAF'sdomestic U.S. cover faced clear challenge. On 8 July 1966, the 303 Committeemet to consider TAT', situation. TAF's effectiveness and value to the U. S.Government were strongly reaffirmed and the Agency was authorized to under-take a number of measures to shore up TAF's ostensible private image. Theseinclude: TAT to seek bona-fide private donations for operations and endowmentfund purposes; Agency to provide funds for endowment purposes; and effectTAT-AID project contracts on a highly selective basis. The decision to improvecover is being implemented step-by-step and will be cleared finally with appro-priate individuals in Congress.

4. TAF's budget presentation for FY 1966 and FY 1967 is summarizedon pages 7 and 8:

2

SECRET

Administrative - The San Francisco and New York sum representsthe costs required to provide overall policy control and direction forthe Foundation, maintain liaison with U. S. universities, suppliers andother institutions, and provide backstop support and services to overseasoperations including training of personnel slated for overseas operations(over 60% of the San Francisco budget is allocated to training). Theoyerseas administrative sum finances the operating costs of the 17offices in Asia. FY 1967

3Programs - The amounts and percentages of programmed funds in

FY 1966 and FY 1967 allocated to various categories of activities suchas Education, Rural Development, Representatives DkTO, etc., arelisted on page 8 of the project renewal. In FY 1967, except for a 4%Increase in Economic Labor Action and small variations in various othercategories, the allocation of programmed funds remains essentially thesame as in FY 1966. The Representatives DItTO (14%) is used to supportthose projects and activities which have not matured to the point of pre-senting a firm project proposal and to permit the Representative to seekout and explore new opportunities for programming. FY 1967 --for programs,r Jfor Regional Programs and C .3 for Support.

President's Reserve Fund - This fund is designed to explore newfields of activity and support imaginative projects not included in theregular budget. Activities undertaken through this fund are cleared withthe Station concerned and Headquarters. FY 1967

3 •

Special Anti-Communist Development - This fund is designed toencourage projects which anticipate or can counter opposition activitieswithin the limits of TAF'• ability and image. Activities undertakenthrough this fund are cleared with the Station concerned and Headquarters.FY 1967(Attachment 1: The ground rules under which the President's ReserveFund and the Special Development Fund operate can be noted in theattached cable sent to field stations, MR 77466, 3 February 1966.Several examples of activities undertaken under these funds are alsoattached. )

5. Each year the Agency asks the Department of State to solicit theindependent views of the Chief of Mission in areas where TM' is programmingon the effectiveness of the Foundation's programs and personnel. Attachment 2is a memorandum prepared for the Da, 26 April 1966 summarizing the Chief'sof Mission responses which are commendatory and constructive.

3

SECRET

6. Each year the Chief's of Station are asked to comment on TAF'sbudget and program for the coming fiscal year in their respective areas.Attachment 3 summarizes the response of the COS' on the FY 1967 budget andprogram. These comments are generally favorable.

7. The project renewal has been reviewed by FE Division, NE Divisionand CA Branches 3, 4, 5 and CA/PROP. NE Division concurred without comment.The CA Branches and CA/PROP concurred in the project without comment orrecommended approval. FE Division concurred in the project renewal butcommented that although there is no question of the value of this project'sactivity in support of overall U.S. Government purpose in Asia, "TAF does notfunction effectively, given the cost of this program, as a covert politicalaction instrument except in rare cases." FE Division's comment was in refer-ence to the project objective which states that "while it functions effectively asa covert political action instrument, TAF publicly adopts the posture of aprivate non-political institution." FE Division also notes that the cover problemof TAT cannot be resolved by the adjustments proposed in the funding of TA?.

8. Although CA./PEG concurs with FE Division that the adjustmentsbeing made in TAF's funding will not completely eliminate from the recordsthe past relationship of the Agency to TAP, we consider it an appropriate andnecessary step to be taken considering the interest by the 303 Committee andother U. S. Government officials in maintaining the activities of TAT in Asia.As to FE Division's comments on the covert role of TAP, the comments ofChief's of Station tend to refute the comments made by FE Division in Head-quarters. In addition, the reviewing officer who also reviews FE projectshas, on several recent occasions, come across highly laudatory comments onthe activities of DTPILLAR and its representative in support of the Station'sobjectives and programs. For example, in c_ TAF Representa-tive in Hong Kong and his activities in support of the C._ iprogram arenoted inimost favorable terms.

9. Recommend approval. We strongly recommend that DTPILLAR forFY 1968 be processed by May or June 1967. The TAF budget and the commentsfrom the Chief's of Station and Chief's of Mission are obtained in April 1967.Shortly after this exercise, would be the time to process project DTPILLAR.We also suggest that CA/B2 submit with the project renewal a summary of com-ments of the Chief's of Station and the Chief's of Mission, several specificexamples of project activities which covertly support Station's efforts andseveral project activities undertaken through the President's Reserve Fundand the Special Development Fund. It appears completely unnecessary forCA/PEG to request this information each year as additional attachments.

4

at.P

a ir":. .1. ( pious

yvi./../30

(rm...m...1;,!

-fl -1' , • • J

-

A U TI! C Ii T I CATI HQ

01 : I- IG !■"1

ti ‘(:).,

*7'2:

• . 0

6-MESSA,GEFOr.:1

1:17Er-

tr,

tritUril 11P.ANC,1-1

"DC- 2 ....a2 C

o C_c._ c c,

C 3 C C j C_ 2201 \rt , HIE (:07't ",7 /01

/c 3 c .3-r 3 c INTO

C C., _3C.

C__ mirovot

=SID= DTPIFLAR TO LSCA

I. MID VRAR ft BALAMC73 F=L1.7.4T'S nflavn FUND ( P m') AND

31:7C!AL DEVELOPMENT FUND (SOF) FICE L.:71;ING TRANSMITTED VIA ovEnT

LIT=AGS. FOLLOW I NG PROCEFITEI1 IN :I. 1;2C2 Dp n PROCESSINCI.PFDPOSALS

70R IT-I:DING EITHER PRP oa

A. suBmIT PROITZAE DSIJS ro= 17-:.AT WITH FULLEST

rosmm STATEWNIT RE PROJECT QUALIFICATIONS FOR SPECJAL FUNDING.

'D. CONCURRENTLY SUBMIT VIA STATIOI; conmo SEPARATE STATE-..

nrAT JUSTIFYING procosAL ID TEEMS DTPILLAR'S. BASIC POLITICAL

ACTION OBJECTIVES. • PROJECTS WILE NOT . 132, PROCESSED UNTIL RECEIPT:•

THIS STATEMENT. FOR YOUR IDEOnlATION nunnK INS WILL IN MOST

CAfl7. 5 SEEK STATION VIEWS DEFORE TjE ,01-rAJG PROPOSAL, YOUR

CutilT/

H.A'.t . r1IDNT OF ;: ...YATION SUPPOAT,C175SA'170.7 ADD INDICATI

W itgLD Tiiy;Kr1'on12,

C. Al4ER rnoci7ssING

'11)

'11 tUri.92:

11 IAD

111 FILE rti c;

4

It

(1 A

AUTOCIrt iGATI noICC rr

---.. EC /1"1E2ALi V'

Tir .Iir, r,rn,"

nt)

afiliatailtr•-•••-•••••••••—•s••••••■•••.- danytal,figswealMESSMA:FoRM • D IOW ri t*itrti TO 1.1'1■..11 11111

—ArPX. M71“..YIPTYX200EM-w%r-1 tI A!, CO I' NOW f Inc

!;;;-;): v11 , A corre

— —two CITE p m '7 17/2/

/ c!;

TALORGENENT HE coucin. EIELD . WILL TNEN DE INCOMFD OF

ACTION TAKEN.

2. CRITERIA FOR EOTA ERNES OVERLAP: SDF DESIGNED ENCOURAGE

17.052CT3 WHICH ARTICIPATE 02 COUNTER OPPOSITION ACTIVITTEC WITHIN

T.= mmiTs OF DTPILLAR'S 4\2ILITY AND INAGE:PRF DESIGNED ENCOURAGE

2H7LORATION NEW FIELDS Of ACTIVITY AND SUPPORT IMAGINATIVE PROJECTS

3.7071 INCLUDED IN REGULAR BUDGET.

3. EFFECTIVE I MARCH Arm rAcil noNTII THEREAFTER CURRENT BALANCE

TR737. FUNDS WILL BE REPORTED TO YOU VIA DTPILLAR OVEIffR MAIL. YOU

ENCOURAGED sunnIT PROJECTS ron TRESE FUND3.

•-Ar•rati,C>:--C>-:•rt

END OF MESSAGE

SECRETProjects Approved for President's Reserve Fund for FY 1967

Korea - Administration Staff Trainingjor Members of NationalAssembly ROK - $14, '2.00. This project provides funds for the trainingof four staff members of selected permanent standing committees of theKorean National Assembly. The training will be administered by theAmerican Political Science Association through the Congressional Fellow-ship Program. and the Ambassador worked with TAF Repre-sentative in formulating the program which has their enthusiastic endorse-ment.

comments on the project were as follows: "TheNational Assembly can play a vital role in the continuing development ofstable and responsible Government in the ROK. The Assembly can alsogreatly obstruct and discredit the development of democratic institutions.Training of members of the permanent staff is one way to help the Assemblydevelop in the direction we hope it will go."

is in contact with the speaker of the National Assemblyand hopes to develop the four staff members during their ten-month stayin Washington, D. C.

Special Anti-Communist Development Fund Projects Approved for FY 1967:

Special support to the 8th General Conference of the World Fellow-ship of Buddhists. In order to insure that there would be an adequatenumber of pro-Western anti-Communist Buddhists at the Conference tocounteract the plans of the Russian and Mongolian delegates, TAF gave agrant to the World Fellowship of Buddhists Secretariat to pay the travelexpenses of delegates from countries where TAF is not represented, suchas New Zealand, Australia, West Germany, Tibet, Nepal, Sweden, etc.

Special Development Funds were used to support several Cambodianstudents in the U. S. who are of interest to the Agency.

Special Development Funds in the amount of $10,000 were used forBook Programs, travel surveys and development programs with the newanti-Communist Government of Indonesia.

SECRET

SECRET'

RPR

MSMORANDUM POR: Director of Central Intelligence

VIA: Deputy Director for Plans

SUBJECT: Chiefs of Mission Cements on the Workof The Asia Foundation (TAP)

I. This memorandum is for the information of theDirector of Central Intelligence.

2. Each year the Agency asks the Department of Stateto solicit the independent views of Chiefs of Mission inareas where The Asia Foundation is programming on theeffectiveness of the Foundation's programs and personnel.Attached are responses received by the Department thus farthis year, including all but the comments of Ambassador Blairin the Philippines. We find these letters generally cos-mendstory, encouraging and constructive. We have convoyedthem in substance to the President of The Asia Foundationas a further guide to shaping the program for the comingyear. Key points and excerpts from these letters are out-lined below.

3. Charge Archer Blood, speaking for Ambassador Steamin Kabul, reports that the Foundation "continues to be aremarkably effective organisation in support of U. B. offi-cial objectives in Afghanistan." Be notes that the toads-tin "can gather under its roof at one time more of the realdecisive makers in Afghanistan than any diplomatic missionor other Government organisation can do."

4. Ambassador Lyon in Ceylon says that Foundationprojects "are worthwhile, effective and in line with whatwe would like to see done in Ceylon." Anbassador Lyon on-ends the foundation's flexibility in responding to program.wing oPPGIguilltles of E. B. national interest and encouragesan expansion in its activities in subsequent years.

5. Consul General Rice in Bong Kong commends the Founds-tiara's support to the Chinese University, the Committee forDevelopment of Boole-economic Life in Asia and the China NewsAnalysis. Be exhorts the Foundation to do more Adairlaiiisof aieleting Chinese and other Asians to study China and lessfor Western scholars seeking to understand China.

oronq

6. Ambassador Relachaner in Japan reports that he hasreviewed the program in detail, finds it "excellent" andrecommends its approval as written. Ambassador Reischauerexpresses "full confidence that the work of the Foundationwill continue to be carried out in a way that will furtherthe policy objectives of the U. S. Government."

7. Ambassador Brown in Korea describes the Foundationas "a really effect its instrument for providing Americansupport to institutions and individuals is a wide range ofuseful activities throughout Korean society." No portico.lately commends the Foundation's practice of providing assist

-ance on a diminishing basis, thus to encourage self-help andself-sufficiency.

S. Charge' Knorr &lash in Laos, speaking for AmbassadorSullivan, reports that the Mission is "Inprolosed by theFoundation's ability to carry out so useful and extensiveprogramming on a limitiod annual budget of about 6160,000."Charge Swank particularly commode the Foundation's successin the publication of Chinos* language textbooks, counteringstrong Chinese Communist efforts in Laotians educational andcultural affairs.

9. Asbassador Bell is Malaysia believes that "theFoundation provides the Mission with a flexibility of actionand fundimg which complonents our on efforts sad gives usan operational ability tar beyond that provided by our ownefforts." ambassador Bell finds the Foundation Represents.

ttive Mr. Milers, "cooperative energetic and inaginativo,and sates that all three Fonadition Representatives (Borneo,Malaysia and Singapore) avoid duplioatioa and cospetitionthrough careful coordination. Consul Richard Donald InSingapore adds that "TAF's intelligent focusing of itslimited resources on the really basic problomm...has high-lighted the validity of its prograns in terms of furtheringthe official U. B. objectives of economic viability andredirection of Chinese chauviaistio forces." Consul Donaldnada that the ajar utility of the Foundation in its unoffi-cial status and "its flexibility and relative absence ofbureaucracy which makes it an appropriate tool for use In afast moving and demanding situation."

10. In Taiwan Clara Arthur Mumma points out thenecessity for the Foundation representative to be in closecontact with official and private American, in a complex,personal and political atmosphere. Chart/111mm°' coamondsTAY assistance to Chong Chi University Graduate Center and,

2

SECRET'in general, finds the Foundation's program beneficial toU. S. objectives in Taiwan.

\11. Ambassador Martin in Thal/and writes that the

Foundation "continues to show a degree of flexibility inlending a helping hand in various program when for variousreasons the needed assistance cannot be provided throughGovernment channels, This flexibility is perhaps one of itsnest outstanding advantages." Singled out for particularendorsement are the Foundation's programs with the Buddhists,Thai Universities and in the production of Chinese textbooks.

12. Ambassador Lodge reports that "the two AmoricnnRepresentatives of the Foundation in Saigon maintain closecontact with officers of the U. S. Mission and we have beenimpressed with the competence and judgment of the Foundationstaff." He notes that the Foundation is able to processgrants in a much more rapid and informal manner than theMission can, and goes on to say that the Foundation's"independence of the U. S. Government and flexibility inbeing able to endorse projects flick we cannot support havemade it a valuable element in our effort here."

13. In a letter which was pouched directly to Mr.Reins and to the ',resident of the Foundation, AnbassadorBowles recommends a substantial expansion of Foundationprograming in India. Ambassador Davies would particularlyincrease provision of American books and professional journals,travel grants to Indians for study in the U. S. and projectsshies entail substantial matching rupee contributions fromIndian sources.

14. The obvious action points in these letters, alongwith the contents and suggestions of our Chiefs of Stationsand other senior Agency officers, have been factored intoAgency guidance to The Asia Foundation for its present andfuture programa.

Signed C

3Acting ChiefCovert Action staff

cc: DX'

Distribution:Orig & 2 - DCI I - C/CA

1 - DDCI I - CA/2 ChronoI - DDP 1 - Ambassador's Letters

DET/C/CA/2/ca:ct (22 April 1966)

3

SECRET

:

SUET 0

9nments FY 1967 Budget

C. 7 _ "We discussed each aspect of the program with theRepresentative. We perceive no overlapping with other U.S. activitiesand believe the program supports Station and Embassy country objectives."

_3_ Program was the result of consultation and agreementwith the Representative aniC 3. The program supports country teamobjectives and supplement I jefforts

The program represents no significant changes fromprevious years. Projects of interest include support to SELA (creditunion), a Chinese language edition of China News Analysis, support of astudy on Chicom Military, and the achievement of the journalism schoolat the New Chinese University.0 1 will discuss programwith President of TAF in San Francisco inclu mg Representative's planfor strengthening the study of science in which we concur.

c 3 "Budget discussed at Headquarters withCancl AmbassZaor. Budget in general very favorably reviewed. In com-menting on the Representative's covert annex and the proposed TAFpolicy of creating a solidly based Free Asian Community as a long-rangecounterbalance to Communist ChinaCj jin IN 61802 (28 Feb 66)states 'TAF is the Agency's most important asset for this task and othersdesigned to provide a context of intra-Asian cooperation.'"

3_ "Commenting on preliminary forecast stated we considerit well balanced in light of nature of TAF activities. Particularly note-worthy projects are support to physics symposium and experamentalopinion survey of Chinese residents Japan both in support of Tokyo/Chinabranch activities. Vietnam/Japanese relations will be given emphasis aswell as touched upon by Ambassador during debriefing Washington."

- "TAF _3 liaison and coordination/cooperation is bestexemplified in Korea. submitted three page telecon commentingon each TAF project an how it is related to or is of direct assistanceto Station covert operations."

C. 3 - 3believes the FY 1967 budget 'outlines a wellrounded program aimed to meet overall country team objectives in Laos'.They particularly endorse hiring Frank Lui as full-time advisor toMinistry of Education for Chinese affairs; increasing the developmentcategory to ir1 ri, 0o0 to cover likely needs over next year particularlythe edocai Iona I Thee j aIl 4j u r l'ali Inatilutp,"

ictret.,

j- "Overall budget responsive to U.S. aims and focuses

on major problem areas economic and social development as well asMalay/Chinese Chauvinism and Communism. Several projects directlysupport r j and covert action objectives of the Related MissionDirective. Specific projects are listed in the cable."

C- recommends no significant

changes. TAF's program is subject to OP restrictions and thusinhibited."

1- "Believe overall budget follows long-terrnLobjectives. Nearly all projects concentrated in such areas as regionaldevelopment, rural regeneration, mass media, labor and manpower,youth and students, all areas of operational concern to Believebudget well oriented to support U.S. objectives in Philippines.commented separately on The Rural Development Program proposalwh i c looks on as something of a touch stone of degree to whichTAF program here can successfully and resiliently complementoperations in a concrete instance."

C- " C- ..7commented very highly on generalthrust and content of TAF program relative c 2/ Embassycountry objectives."

C— - "We believe most of the projected activity is broad andflexible enoug to embrace most ofE need regarding greatercoverage in the intellectual student field, economic/political developmentsphere, Buddhists and other stability-related religious areas, withselected assistance to be given to both Taiwan and Mainland elements.It is among the younger and middle-aged elements of the private sectorwhere we E believe TAF can make the most unique contributionand gain and develop access which is normally out of range ofIn addition we foresee operational potential in periodic visits by L. Z.Yuan. He has good contacts here and can be useful operationally in thecontext of reporting on The Government of the Republic of China activi-ties and influence on C

_a "Chided Headquarters for failing to increase the Repre-sentatives Budget for FY 1967, stating 'It is difficult for us to understandwhy this dynamic program, excellently meshed withC RelatedMission Directive, and, which we have repeatedly stated is in keepingwith U.S. objectives in the country and in the area, should be hinderedthrough lack of sufficient funds and sufficient flexibility'."

2

J

SECRET

L. J -E -D endorses and recommends approval of TAFbudget for FY 1967. This is a product of continuing frequent contactbetween the Representatives and Station most of what we proposed cannow be done. Much of it is of value to the Agency. Proposals are inline with Agency objectives and do not represent marginal do-goodefforts. We feel the balance of effort and costs is excellent."

3

SENT

29 November 1966

MEMORANDUM FOR: C/CA/PEO

SUBJECT : Project IYI'PILLAR Renewal

. 1. CA/B5,recommends approval for Project DTPILLARfor FY 1967.

2. During the past year CA/B5 mechanisms werefairly active in the Far East with major meetings inTokyo (Sixth General Assembly of the World Assembly ofYouth) and Manila (Asian Regional Cooperation Seminarsponsored by the International Student Conference).Both of these meetings received useful and timely supportfrom DTPILLAR's Headquarters and its Field Representatives.For example, by providing travel grants and financing someof the meetings' administrative coats DTPILLAR improvedthe security of WOFACT's complicated Ind sensitive fund-ing arrangements for both of these international meetings.We have also found DTPILLAR reports extremely useful inbriefing CA/B5 agents on several FE youth and studentsituations.

Ccoc.A.A5

sEenETI

RCM

MEMORANDUM FOR: C/CA/PEG

SUBJECT : Comments on DTPILLAR Project Renewal

1. We feel that Project DTPILLAR should be approved.

2. CA/2 consults this Branch on labor and labor-related projects. We find this consultation mutuallyuseful.

3. In our opinion, the activities undertaken byDTPILLAR in the "Economic Labor Action" category notedin the Project Outline, contribute to both labor operationalends and to the Project Objectives.

C

-

CA/4/SRT

APPROVED:1

crC/CA/4

SECRET

14 NOV 1966

Chief, FE/C1-1

I—

---7571

7

7--SECRE1 tr4p.va0;&

. ludod ki::1 atoratit

MEMORANDUM FOR: CA/PEG

SUBJECT : FE Division Comments on DTPILLAR ProjectRenewal

1. We do not question the value of this project'sactivity in support of overall U. S. Government purpose inAsia. There are, however, certain comments we would like tomake with regard to the project as written.

2. Paragraph 4a - Current Objectives states: "While itfunctions effectively as a covert political action instrument,TAF publicly adopts the posture of a private non-political

I

institution." It is our view that TAF does not function effec-tively, given the cost of this program, as a covert politicalaction instrument except in rare cases. The above cited publicposture precludes any broad covert political use.

3. Paragraphs 4d&e touch on TAF's cover problem. Theimpression given the reader is that the problem is entirelyrelated to the source of funds and that this is being takencare of. In our view the funding problem will only be solvedby:

a. A complete break with CIA, which, as we see it,would not really reduce the effectiveness of TAF as itnow operates;

b. A different and acknowledgeable source of U.S.Government funds, i.e., the White House.

It should be recognized, however, that neither of these willprevent an exposure by Ramparts or some other publication ofthe long relationship between CIA and the Asia Foundation,which fact is presently known to people numbering in thethousands.

C_

C-

C-C

Cr-nr-t-no.ithfi tti

SOOT FOR CA PROJECT SINIWAL

1. TOTAL FUSCO SSQVAIST mats?

Adalatstratioa

San Francisco mad New YorkOvorsoas

Total Attalalstratioa

!nemOverseasSea Fewtoe AdataistorodSupport

Total Programs

PresIdost is Assn Fuld

asairrs tTotal

Isp Clots for gee Stall AlmaTotal Su4Set for 2roje4t

2. AMOUNT IS MCI MUM WAS ISCLUSD IS TES OPSRATIOMALMOSS

The Ants Fessdatlea (M) was lasluded in tha FTISATOperational Press In the Amoust of r --p. Funds forthe addititemIC j) musts sessaleadd by taasslipateat ofa Staff Agent to the projeat La Mitsui are avallablo withintho CA Staff het for PT.ISSY.

a. SWIM at me APPNOVX.aim OOLIOATO DT FISCAL masun 111MATIOFt

Viten Your A99weved Obligated

198119S219SS1054 0

SECET

*lord tear (otd) Approved (otd) Shligatin (ad)

Mae Ladino too allotant of C.- _ j is ife12414Sine tone erfr000d and obliond OS Juno US In realroonad_adattistratin soften nigh won fend sad oneadedby TAO dating lif..10SS.4. man abes

a. ftypgatantrap: W oo wenn slain is tosupport 11'•;-,.11. roils objortivos by assist.taf Was inimiduals sad Sanitation is their arts totheir on nelotin ad itiatitatts.....ziasi

t* 'Matte to whin: (1) sagenn sawanal. .! ispanima, 2) pronto wiablo tin Sith theIES1 Moat, (S) rediren often aatinallaas (4) ondloatothtbitianible seatalistiaassaligosos st sad (9) inaleatoenOSSO of freedom and 4000efeer. Milo it fonstioisSolly as s nowt politioal anis instront, MAYpablitly adopts tho rotor* of a patron assampolitioallanftatisa. tibia public stases is afinotiesil asesoodatinto the hot that no satin lose of TAW prognosis is opesto soratts by heat gallinnii sad 55 Ann areas, as v011as W IMS tOrollo Sornanan and anaitting Asterans.At tio sena tin, by oproly deolsrin its toterttoe toaSeltS* MOM In activities dear to east. mist sadommeoto Proesoot osS by won ooltttotite SO Delistoe re * print.toortitto*. is ablO onntly S. 00114.Part LI. 40001060 sad Ants siestas is MAIL_ The

- an denloped largoly in ft. 411 TIM MogrossataeVas is nordintioatith Stations sad Wogs of Mission.

Subitnatin project proposals an rovismod by OAF sad Mn.,0104/Wat•rs for nap *my with U. S. Polio*, ralswasoo toStation an Country Toss obioctiVes and propriety for printsmaths:. than VA* official sponsorship. In 13 roars ofprograming, TAY has ntablishod soros sod inluonn at alltavola of society in the countries of Asia 'hers it has been

2

represented. Burin MT.1044 thi n. this to utilise itsaces tad expertise to mho further eigrifiemat sentriba.Hem to V.S. tevermaoat sad Ages goals. Per examplot

(1) TAY perused its objeetives is Afghanistanprimarily taring* advisers in plass with the Afghan Gammameat. Combised efforts of VAY's ftemmmratal Law Advisor sadits sealer adviser to the Minister of InsanieS Wad theMOS to breads, internal and areal sarbetioS Pattern,improve import maimgi mad damn depeadoase *pea Sovieteastets.

(1) deyiem's Seesposeimitkmmamemeat evideseed anreentivity to 11/ with rapid agsnamelle et preieet everessisWale. sar the mervieve if a sealer advisor te thesad 101 Lome! 110, etISSetps hetieets tree high stagsMisiatry if and Shatuirrio bah MOM, eePort saeInntin arlita Anialith /SW emeleelse the train-ing is ammo it IS, lUdieleouserSt it hey eleatatet theSeeeremeat te small VIIMOIV100 devezepotat ProStem.

(1) Is Meg ass a bay TO mat t astehat by a$10444100 asset fres the Swam* if State * issered theeseetruetiva if a stedleit ember at the sew Shins Weer.sity. Vhst Veivessites 0.5.1 of Jetrusliss deveispodwith =ern the dinettes 4 • advisor,ass Its adsrgrats peeps aid attreeted strawr

esit tees tb:AtIme 10000 fess of asialstailisaemoshowisis ter Nudists.(4) Vara empbasis is Sadie os idestiOtsS seerSimi

is produsteg enee 041111101. fro major pram* offsetsleaders sad with eastablished patitiAW elitesLa thisOres, both satirist sad advisory supportto the taseitate essatitoeimpat sad PerUswastest Otedleeand the as elandatia. Sa000140k Inititute, bars providedtasialag astell as a meaSea Stift grad ter Ming adsatiMbLiabed nan. lea rift ISM rtivaraities at lainOva* diraat flY riaspast to the Itatvereity Sessis OlesoissiOn.

(S),Ialra sistassatat La In La obeselyseabed itithL liatilinti Ord is. the eathealastiesuppeet of tatturkeemr Meese* A min 4110114Seat tertel theyear as the first vase plasetag onstaifrItasked by theSums eareirausat mar a TAP Sat gad Ira Advisor OmniVaglar, Another eosin VAS Seises partieipated with UreaCabinet etagere in preparaties of a plea ter Govermentroergamiestiem.

(0 TAY prograsalag in Laos and Mann no marks*by pompons Weak alped shun up ths Laotians and tiotasoinprofile . cis a cis Amnion . is those asestries . seentss.insurgissy "tarts. VI* TAT Sangho finial Ionise programis thailamd, when nuottedvahm an nylons( to totalremits arias into *loon toads with wan power sears,was suisommtelly duplicated in Laos and sent year will hoadopted by the Ministry et Cults. In Laos and Vistas - isin Thalami . lass andhat programs oestiand to sent:autoto the mairilissties sad sastrastive sibtlisatiem termottoes'/bifida. of this ispertest goon.

(7) Mrs Ado as a onsan oss0 matt/ MSstated by $ia tia reed rommatios snot to a omphom ofOttligos As alathmie sad Sulu provissam is the PhiIlls snot as the outgrostk of omassivo asundinistime sone vir gnats. within 40 hist* to

pensmat roosit teen Pre444W4 laria, IMF antstio*Valls produced a WON mat and * tatirmAii4T asor site sna premiss* Messokile Mee runt owprisms is Maas inflamed to grease tanovollOota isadotaimanin ettatemoy sad enommis pregoas is thesereal axes.

(1) Ia both litNaralt ono Moloroto, Mrs role is sowidely s000ptod it all towels at astsamatat that So tassootimmiso mod in tto laprssntativn to be sitrastas in10$00414$ to Ma 141, official taints in soototat.INOrnitans to mot aloofly with thO CMOS ammaitY toboth net tin sad to perlds seclerAsirliss adOtoorts toWU East sad private orgssimations*

(0) Is Ibmilest IA, plant blob priority as brash.in an the traditional isolation sad ampaiss tan theDimas' ansumin toad anal tett tato MD Mood*

eista the prertmeme* lOstedtes Warns la theanther.asla sad MU Who navel WSW an 4.041.**th0 at sasitiont TAP oestattottoa Salbajtood

too boos its moos in hilytag the Modelot MOS tam.IOW sod Iaplqst a teetereetin robs Is oat

Sin 404a the MOOS sOiltalk/ sotioast sootol tok_omit earn

am* pootito tavathablo entrastins to saoslood es oolootoostheeegean onset.

(ID) Although it outlasted all other private and*Stasis/ Aswan press in Cambodia by tom months, !AVfinally stoma its Phan Posh elfin in Marsh MSS atterolive years of resident prognosis* * Prime Minister ShatolisInter to the TAD president did lean the door eyes tor

4

LAD:L1

futurelag, when relation; between Severamentsisareve. MSS is fully tare of Mae oestiaued program-sing in toper* of sone tasty Cambodia& stediets in the

aad has registered teat approval.

b. Shogept Series STa1944 TAW *natively redwoodthe *Naha—a-Administrative perweasel„ both a* headepasterssad the field and at its staff et foreign estieeele by 15pores. At the same times sow gregnesing segertmeitiesis ITaISIT will reset* la the follevies additital programpersommelt

(1) leer assists* nprs.sststis to be posted lathe Philippines. Woo, Thailand and Vietnam.

(I) Preens spestaliste is MmAlbIst affairs SotSam Frametee offise.

(S) A proven speolallst in India* affairs.

(4) A Special Aselstem* to the Presidest forlovelopett a this inahmredfleor elll be resosetab3.4. Torpublic relation sad temdatites, with their attests*esver and setrity pribiese.

(A) MMUS/ Peretoel to WSW sada* deeetese0reqpired hetet of ilbers00044000 selmi ssosotb to thisfield sod beams et the titOoteSed sember ed Oftbetametedoote an Is the I.S. elbs bees sequived IMO Meedemestersheadline site the elegies it the tosbedies field effise.

(S) As incest la the *umber it Amerleas advisorsoverseas. Salaries sad alienist tor advisers are listedas pregrea oasts, The Met konver, esesidered feemdatiesspleecs Ser imesemommerd ton SOMPooss and are thawiieleded is tie SellowieS 1000,01

11.0. salsas in 1 1.40 SO4414. Wigan is fists ssgossipsattests is Ls.

Was is gists112.10

Sn

Charles J. Mitsk jelned the Beard of Trustees; Paul C.Smith end John I. Irwin II restated. The toad new has21 sesberas Stints will be made arias this fiscal year tobring the Board up to full **meth (28) with special

231)a.:

attention to these who would be instrumental in attractingprivate funds for endooneat.

4. 1,:s.....eenotteas During 77.111$4, 41 CO and00 mai addition, 70 TAP reportswere eensolidated uader ten Ileadquartere revert numbers anddistributed to laterestod desks in MCI, COE and Oct 'effortshave sentioned during the year to further increase the qualitysad timellases of TAT reports. Mi.mestbly situation analyseseeptinue to he supplied to Stations, Chiefs of Missies, theDepartment of State, OCI sad Itoto roPertodlf are soliVesattmod as 'Westin reports Its karflomigoille soireeswith emits asses. The hipremestative 1* the fliad eonstimes to supply the Steam with infornation„ bloats andaseessments of value for everstiesal and baakrwraf use.Is esisaltaties with Mediae VAL scholars, IMY applied itstwelve yews of pionsming esportise in the Muddhist fieldto a merles of stogies is depth on the palatal impeateatsof this ispertent elessat of the OuromitAstas SealBewares. these abolition sensitive doesmoate have beengives carefully limited dissemination to desisted isdividualsin leadquiters, field Stations, State departmeat end theWhite Miss.

aweTars portormage was reviewed

steeees of as esamlnalles of ~Wstikier finftireaste As fedi,* movOiret06 on II July 1200S 0401/0464 eadersed braise $OS Cimmittee in a desists:1 to21:10, OP Selmotant ially Tags dimeitie W.O6 Ofedeatialits

tiemally, assist conients on MAP by Chiefs of Mistioa tothe Sapartalet reaffirmed, isentryarmenatry, Mrs effective.sees in permit of its assigned missies.

0. s in the abs of 'Use seriesen the , in an atadimat everthe warUS'sdemestie 1411. sere Dosed b

y1111::::** daielities to * ing, spr inn, mot070441 the:tamp to tette ittiolearnated stepebyeedep and will

stoats unity with appropriate indivilktals in 00141001.

C. Liaisons IOW repstosentativie aestitoo to ottotoloall a.eenaiaa with OA COMINIIIMA *41 totals sadetfliers, e thirtieth *Met is their innsnottyinesegh the Stales, tie eovertly 3reyrimenns TAP as theMemstry Mem.

lateragesoy Ceordinatient Mental program policyliaison iiid gaitted out with Ike Drpartmeat of State inWashington and its Chiefs of Missies Or their desistedrepresentatives abroad.

SaETh. !Aegis Programs with . sad, if oiremetamme

warmat t-WITNia . /Dieresis sad Sepal. A mamma inSong Stag 111.12 beember 10410, shaired by TAY TrusteesValise. Storni* (Stamford) sad drama Kirk (Oeleabtr), ofmajor Asian nalweesity presideate. Sehjesto *Selo of theAsian Milverelty Is Asian Ilantlegment," eitk regional na-ils shelved by TAY Megmeestatime. Mom lammume inyrogramlag La the field of in is Vista, Japes, theIhniPTIOes and Mama. Plaiment la Meng Meg of TAP'.SAW aisle (Aran Saul) ea hamesim sod MemlegmatnssisaL iss* s rellemil MIN sereless will beawat to all area repremeetives.

1. SSW* ilialelaireValts asso edflesse sueseemity-Witfloor sad tve seersterim Mat Tail tins..the egeritiess of this predier**

TOM MISPOMMO SOSOMS Mae(with emsevisis to MT41411)

Mitaistvaties MUSS ST4041tea Smashme h Mew Mork _D C7- s3immersTotal blatidattlitiS _ _ , c.

IMMO!OVOSIMMIS CSan hassles* Adelnistmed _jiMiegeet

Teial Programs CSWeeddMit's harm teed

Sposial Anticommunist Sevelegmes C.

!Mal CTi C140 Seta for on Staff Agent (s0. pors 1) c Metal budget for 'meet C 3

C

IOTALISINVO

S *1 Program.Mount Budged Amount27-1000 1000 1007 21-1.67

*0 20.0 $13 MO$ 1.84 3.8$$

▪ 7.0$ $.04 3.5

3 3.8

3 3.0• 3.8

$ 1.6_M 14.0

10011 100.0 C_L-

•••••••••.,

47.

PROMO CA 1947)

.atelaZMutation

a taboo Action

lloatua1lisaitianding

Mein ilaionso and11~421

&a and MovassiontSamos awl toobsologyMavis tear Anima

tintal OW *two a ta•Calionl and EntallsetualsAnnistakao to itatosaional

allid inteStional

eerect,a Prof ra P1 5

ft-kJ

—U;

mosam FUNDS AVAILABLE FOR DEVELOPMENT ZN FY-1988 A 1987

DevelopmentAfghanistanBanOsdiaCarlonWar tongfadIndosesiaJapanKoreaLassMa *is

ititanPhilippines

Patio of China

*ingar.ThailandVistasSan Francis.°

TO'fAL

*Singapore included in Malaysia Federation during 11-1966

Rtp/vova AVG? PO S

FY-1988 FY-1967Total Total

Pro S ram Funds Development Fevre** funds[

DOI14;:aLLOL1

10 February 1966Eloc7,1,110.1101Wri,

MEMORANDUM

'SUBJECT:

FOR: Deputy Director of Central Intelligence.

Deputy Director for Plans' -

CA Staff FY 1967 Budget Allocation forFree Europe,-Ine.-(FE, Inc.), RadioLiberty Committee (RLC),- and The Asia'Foundation: ,(TAF),, -:

1. This Memorandum requests, the concurrence of, the::DDCI as Stated in paragraph S. -

2. CA Staff has. eceived an FY 67 budget allocationofC: 0This/represents a reduction'of approxi-,'matelyC: jJ under the estimate of CA Staff require-,

- 'ments as submitted with the Office Estimates in the fallof 1965. As you know, the Bureau of the Budget (BOB)declined to support the increases .for FE, Inc. and RLC,which we attempted to justify., substantial part of this.reduction is accounted for by this BOB action:

' 3. I continue to believe that some upward adjustment •J.ilvthe FY 67 budgets for the two radio operations is7-necessary4n order to avoid unacceptable operations cut-shacks. -To this end T have been examining their needs as,:Well as the needs of other CA Staff operations in the:context of the FY 671pudget allocation which we have now:received.

4. FE, Inc. proposed an FY 67 budget figure of• j)in excess of its FY 66 allocation. Whileagreeing that the operational aspects of this expandedprogram were desirable, CA Staff eliminated certain itemsfor,reasons of economy. I proposed to the BOB an increase - •

of •„,. for FE, Inc. After lengthy presentationsand discussias, the BOB disapproved all increases withthe exception of C_ to cover the short-fall'in'the1965 fund-raising effoQ. (In other words, this increaseis necessary just to maintain FE, Inc. at the same budgetarylevel in FY 67 as in FY 66.) FE,' Inc'. estimates its built-in cost increases to be approximately

SEMI

SECCET116

During the past fiscalfear, FE, Inc. absorbed approximatelyof its built-in cost increases by

eliminating a number dr-marginal operations. I do notbelieve that FE, Inc. can absorb an additional C..._

_. in built-in cost increases in the comin fisca;

year without severe operational pruning which we wouldregard as unacceptable. H . •

,

C.

I propose, therefore, to find an additional one-half_3within CA Staff's FY 67 allocation for

i. oesieve that with careful management this.enable FE, Inc. to get through the FY 67 budget year with- .;out severe operational loss I must advise you, however,1/4In all candor that I do not believe this figure Will beacceptable to Jahn Richardson, President of FEt-Inc.';:or.:to the Board of Directors and may result in Mr, Richardson"sresignation. -While I, would be 'extremely unhappy to. lose -Mr. Richardson,- I-do not feel that my budgetary positionpermits any largerallocationforFE, Inc.

6.. RLC's requirements for F.Y . 67 were estimated tobe $2,191,000 in excess of its FT 66 budget. BOB repre- H

sentatives have declined:to : agree . that•RLC . should expand::its operations at this time and concluded that RLC could - ...

ymaintain its present level of activity withan increase ofapproximately $200 0 000 for FT 67 In my judgment this is,insufficient to maintain the Committee's level ,Of nner4--:tions and I propose toallocate an additional L.„

the upcoming budget year RLC would thus receiv‹:, additional to cover a rock-bottom estimate of C rifor;built-in Costs and an increased capital outlay on the:Munich office building. As a result; it will be forcedto absorb 20 to 25% of these increased costs. As-in(the-:H:case of,FE;.Inc.'i this will tax the managerial effective--' tiessof RLC, Hbutj'think..it can be done.

•;.7...::,TAF requested an additional FY 67and the CA Staff supportedr„ 23 of this proposed .-

j-increase. After its revietboth - in the field and here in .Washington, the BOB concurred in the full increase ; of ElHowever, in view of the necessity for me to make adjusfMents.in order toprovide for the most urgent needs for the radio:operations, I propose to allocate TAP an increaseof only

") For your information, Proposed expansion in other,: operatid0 of the CA Staff in the fields of labor, youth andstudents, radio and TV, and international organization opera-

: tions has been reviewed again and downward adjustments•made in order to accommodate . the need to meet the minimum. requirements for FE, Inc. and RLC. Increased'alloctonafor all these activities during F .Y . 67 , will be under

SECiiET

1

r

8. Your concurrence is requested in my advising thepresidents of FE, Inc., PLC, and TAP respectively thattheir budget allocations for FY 67 will in each case bethe equivalent of :labove the FY 66 budget totals.

ChiefCovert Action Staff

RECOMMEND CONCURRENCE:.

Thomas N. Kiramesslat4 1 1 FEB 1966

Deputy Director for Plans

CONCIM:

7s7 Richard Helms14 FEB 1966

DDCI

3

SECRET

DDP/DC/CA, C„,

Distribution:Orig. & 2 - Addressee

2 - DDP1 ADDP• 1 DDP/PG

CA/SG1 - C/CA1 - DC/CA

- CA/B1- CA/B2