Foreign Relations of the United States, 1969–1976, Volume XXIX, Eastern Europe; Eastern Mediterranean, 1969–1972

31. Paper Prepared for the Presidentʼs Press Secretary (Ziegler)¹

Washington, undated.

PUBLIC STANCE ON FUNDING OF RFE AND RL

Background

Following serious and sustained press and public attacks set off by the Ramparts disclosure that the National Student Association had received covert financial support from CIA, President Johnson on February 15, 1967 appointed a committee to review relationships between government agencies and “educational and private voluntary organizations” and to recommend “means to help assure that such organizations can play their proper and vital role abroad.” The Committee (made up of Under Secretary Katzenbach, HEW Secretary Gardner,² and CIA Director Helms) recommended that it should henceforth be “the policy of the United States Government that no federal agency shall provide any covert financial assistance or support, direct or indirect, to any of the nationʼs educational or private voluntary organizations.” This policy was accepted by the President and went into effect March 29, 1967. Its basic purposes, in the words of the Katzenbach Committee, were “to avoid any implication that governmental assistance, because it is given covertly, is used to affect the policies of private voluntary groups” and “to make it plain in all foreign countries that the activities of private American groups are, in fact, private.”

With the exception of the National Student Association, the Katzenbach Committee did not identify the organizations which had received covert support, although a number of them had been cited (correctly) in press reports, including RFE and RL. It had long been an open secret that the latter were covertly subsidized by CIA and the press probably assumed that the Katzenbach policy was meant to apply to them. The radios, however, were not a major target of Ramparts or the subsequent press campaign. The only aspect of their operations which came under fire was the public fund-raising activities of RFE (since discontinued). It was not argued that government support of the radios was improper; simply that private persons should have been put on notice of this before being asked to contribute.

The Katzenbach report stated that the Committee believed that the process of terminating support to organizations affected by the policy could be largely or entirely completed by December 31, 1967. In fact, the State Department spokesman announced on December 29 that this target would be met and that “covert financial support will in every instance be discontinued prior to December 31, 1967.” He added that “at the time of termination of support, some of the organizations received contributions to tide them over the period required to develop new sources of funds.”³

The press appears to be well aware that funding of RFE and RL will require an early decision by the new Administration—the Evans–Novak column of December 5, 1968⁴ laid out the issue explicitly—and press questions seem inevitable.

Discussion

A decision to continue CIA funding of RFE/RL will pose press and public relations problems. Government support for the radios cannot be officially acknowledged without (a) jeopardizing their operating rights in the countries where they are based (Germany, Spain and Portugal) and (b) increasing our diplomatic difficulties in dealing with protests from the target countries regarding the content of the broadcasts. On the other hand, government support cannot be credibly denied. We are therefore obliged to reply noncommittally or evasively to the questions which are almost certain to be raised.

Such a stance will of course be taken as a tacit acknowledgement that covert funding is continuing. It is not believed, however, that this will jeopardize the position of the radios abroad to anything like the degree that an official acknowledgement would. Moreover, it is not expected that tacit acknowledgement would in itself open the Administration to attack. The radios have never been seriously criticized by the press except in connection with their public fund-raising operations (which were discontinued some time ago).

The real risk involved in a response indicating continued funding of the radios is that, in the context of the Katzenbach report, it could provoke charges that the government is resuming funding of domestic educational and private voluntary organizations of a politically sensitive sort, such as the National Student Association. Hence it is important to handle press questions in such a way as to make clear that whatever the government may be doing about RFE and RL does not affect basic policy regarding the latter.

Scenario

In line with the foregoing it is proposed that no statement be made about funding of the radios until a question is received. The most likely question will be a direct, “Is the U.S. government (or the CIA) providing funds to RFE and RL?” The response should be, “I have no comment to make on that.”

This may well be followed by a question referring to the Katzenbach policy and asking if that policy does not prohibit the funding (or covert funding) of RFE and RL. The response should be, “It is my understanding that the Katzenbach policy applies only to ‘educational or private voluntary organizations’ and that all U.S. agencies are observing this policy.”

A further question might be, “If RFE and RL are not private voluntary organizations, what are they?” The reply should be, “I see no reason for a discussion of what this is, or what that is—I have nothing further to say.”

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 379, Subject Files, Radio Free Europe & Radio Liberty, Vol. I. Secret. No drafting information appears on the paper, which was sent to the President under cover of a memorandum from Kissinger (see footnote 3, Document 30). Attached to the paper is a note, February 22, from Haig to Ziegler. Haig wrote: “Ron: The President approved the Radio Free Europe and Radio Liberty package this morning. I thought you should be armed with this press treatment package in the event the story breaks while you are in Europe. However, I anticipate that you would work closely with Henry [Kissinger] on any treatment of the issue.”
2. It would be advisable to consult Messrs. Katzenbach and Gardner before deciding finally on the press line suggested in this paper. [Footnote in the original.]
3. In the case of RFE and RL, this amounted to $49 million, an amount calculated to keep them in operation through FY 1969. [Footnote in the original.]
4. See footnote 3, Document 28.