LETTER TO DAVID K. E. BRUCE FROM ALLEN W. DULLES RE POSSIBLE USE OF THE POWER INHERENT IN THE OFFSHORE PURCHASE PROGRAM TO REDUCE THE COMMUNIST HOLD OVER LABOR UNIONS IN FRANCE AND ITALY

• Document Type: FOIA
• Keywords: PSYCHOLOGICAL OPERATIONS
• Keywords: COMMUNIST POWER
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0001513629
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: June 24, 2015
• Document Release Date: February 7, 2011
• Case Number: F-2011-00443
• Publication Date: December 6, 1952

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C CENTRAL INTELLIGENCE AGENCY
D Washington 25, D.C.
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-Office of Deputy Director of Central Intelligence
6 December 1952
Hon. David K. E. Bruce
Under Secretary of State
Washington, D. C.
Dear David:
APPROVED FOR RELEASEL DATE:
21-Jan-2011
I enclose a copy of a letter which the Director has
sent to Mr. William C. Foster, Deputy Secretary of Defense,
respecting the possible use of the power inherent in the
offshore purchase program to reduce the Communist hold
over labor unions in France and Italy.
I know this is a matter in which you have a deep
interest and a direct concern and at the Director's
request I am sending a copy to you and to Averell_.
Harriman. I believe that this matter will be discussed
at an early meeting of the PSB.
Sincerely yours,
Allen W. Dulles
Deputy Director
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CENTRAL INTELLIGENCE AGENCY
Washington 25, D. C. -
OFFICE OF THE DIRECTOR
December 6, 1952
The Honorable William C. Foster
Deputy Secretary of Defense
Washington, D. C.
Dear Mr. Foster:
with regard to the possible use of the power inherent in the off-
shore purchase program to reduce the communist hold over labor
unions in France and Italy.
The practical situation, as you know, is that the major
labor unions in each of these countries, the CGT and the CGIL,
are Communist-dominated and are used by the local Communist
parties, presumably under Kremlin instructions, as a spearhead
for Communist activities in the two countries. If we can break
this Communist hold on labor in France and Italy we will make
a major step forward in the cold war and at the same time re-
move a serious potential danger behind our own NATO lines.
It is probably impractical to refuse to place a contract
with a given factory in France or Italy solely because a
majority of the workers in the factory are on the Communist
rolls. To do this might be to cut off essential procurement
in these two countries. Onthe other hand, there will be
instances where a particular factory can be put on notice that
unless certain designated Communist agitators in that plant are
dismissed, or unless appropriate support can be given to anti-
Communist groups, the contract may be placed elsewhere. If,
in.a.few instances, we can in this way destroy or reduce the
influence of Communist top leadership in certain plants, the
power of the rank and file will be decreased and the word will
rapidly spread from plant to plant.
Dulles found very receptive to the idea and
suggested that I bring it to your attention ao as to insure
continued cooperation of those in the Defense establishment who
are particularly concerned with the placing of offshore procure-
ment contracts.
SECRET
SUMP INFPRMATIP~v
 I recognize that this program requires finesse and that
bludgeon methods or the laying down of hard rules are impractical.
I believe, however, that we have here a power to strike a blow
at Communism in labor unions in France and Italy which is not
now being fully exploited and in view of our responsibility
for covert measures against Communist activities I ask your
help to see that we start to exploit it.
A copy of this letter is going to Averell Harriman in view
of his intorest in this matter as Director for Mutual Seearity
and to David Bruce, as member of the PSB.
Sincerely,
Walter B. Smith
Director
SECRET
SECURITY INFORMATION