Foreign Relations of the United States, 1969–1976, Volume E–11, Part 2, Documents on South America, 1973–1976

168. Memorandum From the Executive Secretary of the 40 Committee (Ratliff) to the President’s Assistant for National Security Affairs (Kissinger)¹

Washington, June 11, 1974.

SUBJECT

• Termination of the Chile Account

Last August the 40 Committee approved a $1 million covert action program for Chile, but it never got started because less than a month later a coup changed the picture completely. This January, CIA submitted a request for [dollar amount not declassified] to meet outstanding obligations to the Christian Democratic Party (PDC) and provide the party operating funds for three months while the Agency sorted things out and determined if additional aid were warranted (TAB A).

Defense and JCS 40 Committee principals promptly approved the proposal, but State wrestled with it and after lengthy deliberation, including consultation with our Ambassador, State voted to approve compensation for commitments made before the coup up to $50,000. CIA participated in State’s deliberations and says this is an acceptable resolution. These funds are available in CIA’s budget for the current fiscal year which ends 30 June.

Recommendation:

That you approve the State/CIA compromise authorizing payment to the PDC of not more than $50,000 for commitments made before the coup in Chile.

1. Summary: Ratliff recommended that Kissinger approve a 40 Committee proposal for the provision of covert aid to the Christian Democratic Party for commitments made before the coup.

   Source: National Security Council Files, Nixon Administration Intelligence Files, Chile, 1973–. Secret; Sensitive; Eyes Only. Outside the System. Sent for action. Low and Kennedy concurred. Attached but not published was the January 7 memorandum to the 40 Committee containing the request. Popper discussed the January proposal in Document 160. On June 24, Scowcroft approved the recommendation for Kissinger. In a June 25 memorandum for the record, Ratliff noted that the 40 Committee telephonically approved the recommendation on June 24. (Ibid., Minutes of 40 Committee) Colby informed Kissinger on September 5 that of the $1 million authorized in August 1973, only $13,000 was spent, all before the coup; Colby added that “the sum of about $50,000–60,000” authorized in 1974 had been provided to cover obligations “undertaken before the coup and was clearly given with the statement that it was not for current or projected activities. Thus, the statement can be made that we have given no political assistance since the coup and that any assistance given before the coup was in the hope that a change in the Allende government would occur as a result of the election of 1976.” (Ibid.)