TALKING POINTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000300210059-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 19, 2016
• Document Release Date: March 7, 2002
• Sequence Number: 59
• Publication Date: March 20, 1972
• Content Type: REPORT

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DATE
STATE -A.I.D. - USIA
1
ROUTING SLIP
3 20/72
-
TO: .Cagan.
Initials
Data
Nome or Title Symbol Room No. Bldg.
EXSEC Mr. T. Arndt
2. OPA, Mr. C. D er
3-
4. ~
(Re
fun d s o ' to TA.
Approval
For Your Information
Note and Return
As Requested
Initial for Clearance
Per Conversation
Comment
Investigate
Prepare Reply
File
Justify
See Me
For Corroction
Necessary Action
Signature
REMARKS OR ADDITIONAL ROUTING
Attached are the following materials Rod
O'Connor gave to the Secretary of State last night:
1. "Talking Points" which are probably all (or
perhaps more than) the Secretary will use.
2.. A set of "Background Points" and Q & A material
which we are:.putting into better shape for use
as necessary.
We gave the same stuff to John King of State's
press staff to draw on at the Noon Briefing today
if necessary.
FROM: (Nome and Or9? SYmb
oRi
ROOM NO. & BLDG.
PHONE NO.
SA/IR/ /L:HLevi.n
5316 NS
29074
FORM JF-29 (Formerly Forms DS-10r AID-5-50 & IA-68)
3-68
State Dept. review completed
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i .
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TAL ING POINTS
Re: New Yerh_Times Article on Laos - A.I.D. Funds
First, we have not seen cop ies of the GAO reports that are the
subject of the article. Members, of A. I. D. 'a staff have reviewed
drafts of the reports in the presence of GAO staff for classification
purposes only. The State Department does not. have a copy of Senator
Kennedy's summary of the health report or. the Senator's press release.
rfhercfore,we are at this time at something of a loss in responding
to the allegations made in the news story, which do not accord with the
facts as we understand them.
Second, between '1962 and 1969 A. I. D. lithe full cost
of foodstuffs for regular military and paramilitary dependents
in Laos as well as half the airlift cost for the so 'foodstuffs. However,
beginning in FY 1969 the Department of Defense and the CIA have
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, :~ ~-'-~'+" ' /~`.~?, gyp ,
4*~r ,for r ' ~.~t.C 4,4-j
r,.~'~;.yree+iy taken over these costs. The 1 ast firrt~sfef such costs
a the amount of $3. '+ million was shifted in FY 1972 from the A. I. D.
program to these two agencies. It is my understanding that today
1. D. is no longer funding any costs which axe' ..ttribu ble to the,.
a~..~mither the DOD or the CIA.
Third, it is true that A. I. D. personnel are involved in providing
health set.-vices to Laotian paramilita.:; y forces and
a small number of regutar military personnel. It is also truethat
A.I.D. personnel, who are charged with the responsibility for
care and feeding of severa lthousand Laotian refugees are involved
in that connection in the care of feeding of most of the dependents
of the paramillary forces. The reason for this is simple. A. I. D.
personnel have the facilities and the know-how to perform these
humanitarian services. It would hardly be an act of humanity to grant
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these services only to those refugees thatiu d no connection with
Laotian fighting forces. It is fair to say that in the severe fighting
taking place in the rugged Laotian countryside, there is little distinction
between the requirements of care of military related dependents or
purely civilian refugees.
Fourth, when we have received the text .of, the GAO reports and
have had an opportunity to examine Senatorennedy'a press release
a nd summary, we will be in a position to answer the specifics of
these in greater detail and I shall be happy to supply A&
ewe -o re p;SMT to this Committee.
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" Kennel, A erts Lnorc Civil. F undn StaU. Go to CIA"
(N.Y. Times,. Sunday, 3/19/72)
A. 33aclcgxound Point
1. We do not have the GAO report on the ' USAID/Laos' health program
a&Ven to Senator Kennedy, or the one on the USAID/Laos refugee
program whic}i, according to the New York Tines, is to be presented
to Senator 1ennedy later this month. At GAO request, AID staff
looked .over both reports in the presence of GAO staff for clar'ifi-
r\
cation purposes. On the basis of this review, AID advised the GAO
that a number of paragraphs of the health, report could be declassi-
fied and mother dorm ,rsded. In the case of the refugee report,
AID downgraded or declassified a number of peratraphs slid upgraded
a smaller mmber.
2. Nor do we have Senator Kennedy's summary of the health report.
44 As part of the assistance the USG provides, at the request of
the Royal Lao Government (RLG), to help the 1WIr meet the military
offensives of the North Vietnsmesc invaders e' ? their Lao comnanist
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allies (the Lao people's Liberation Army - LPLA), the Central.
Intelligence AGcn1ey equips, trains and advises irregular forces.
This :Ad:ninistrrt?c3on makes no secret of that fact.
Be Caw;:1en1ts On 0w9 York Timer story
.1..
Wo me,s :
"Nearly half of the United States aid funds
intended to help civilian victims of the
war in Laos are still being diverted to the
Central intelligence Agency's clandestine
guerrilla srwy.... "
Co ~: encs: No AID funds are intended to finance CIA sponsored
f'arce:~. The cast Shifts effective at, the beginning of FY 72
were ce eulatecl to terminate all such financing of paramilitary
ascistruse that AID had still been providing-.certain medical
and rolteteri air support costs and wiceell.aneous costs for pots,
pans and utensila for paramilitary forces and their dependents
.,u1 cti,xting to an estimated 42.5 million for FY 72.
These cost shifts culminated a process begun in FY 69
of all fina. zcinrr of coat q~
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for other agencies. Shifts to etch other agencies in FY 69
amounted to an e;it ated 4u mil..l.ion, in IT 71 to an estimated
additional $3.5 million, and in FY 72 to eta estimated $3.6
million (including the abovementioned $2.5 million to CIA).
2. .'_imneas l'1;ased on the report's the diversions
of public health Aumds, tihich are ma Waged
by the A4,Cncy for International. Development,
mounts to alp estimated total of $2.5 million
a year."
Coarmeni*s; We assure the report was referring not to a diversion -
of $2.5 mill.i.on, but to CIA assunir g that amount Of costs 'Pre-
viously borne by AID.
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T1s It was reported that
the accoinatirrg office es ti.mated that these
scinr:tces by AID to the CIA voula be in excess
of l r.0.1lion betY.,cen Jan. 1, and Jute 30,
)_)'7?_, the s:;:ond part of the 1972 fiscal year
for vrhich the over-all =rzitraent.s were made.
"alhe Kerinec7.y cc mu ttoe ostihiatos, therefore,
that the present muuel figure for the diver.
sions of public health a'` n.ds to the intell.t-.
,gence agency is about *2.5 million.
"Last r.oath's poyr^ent by the CIA to the other
agency was according; to the accounting office,
the firr t refund. The acco nt3.ng office esti-
mates Via.i; the nonz e iirbu~rsed cost to AID for
eupporbing the cl