USE OF CENTRAL INTELLIGENCE AGENCY FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000800150024-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: November 11, 2016
• Document Release Date: February 19, 1999
• Sequence Number: 24
• Publication Date: February 17, 1967
• Content Type: OPEN

FOIAb3b
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S 21i) CONGRESSIONAL RECORD-SENATE February
e. The Secretary may undertake pro-
pro; for water salvage along and adjacent
ei (Be main stream of the Colorado River
aii for ground water recovery. Such pro-
grams shall be consistent with maintenance
of a reasonable degree of undisturbed habi-
tat for fish and wildlife in the area, as de-
termined by the Secretary.
SEC, 7. The Upper Colorado River Basin
fund established under section 5 of the Act
,r April 11. 1956 (70 Stat. 107), shall be re-
"'0 ?Toni the Colorado River develop-
food established by section 2 of the
iiiii;l4or Canyon Project Adjustment Act
(54 fat. 733), for all expenditures hereto-
teeii :eafter made from the Upper Col-
oeacio River Basin fund to meet deficiencies
in Konera .ion at Hoover Dam during the
I. bine per.orl of reservoirs of storage units
of the Colorado River storage project pur-
imam, to the criteria for the filling of Glen
Cony On Reservoir (27 Fed. Reg. 6851, July
For this purpose $500,000 for
teich year of operation of Hoover Dam and
werplant, commencing with the enact-
?,,?nt of this Act, shall be transferred from
the Colorado River development fund to the
Upper Colorado River Basin fund, in lieu of
application of said amounts to the purposes
steiaa in section 2(d) of the Boulder Canyon
Proja, Adjustment Act, until such reim-
bursement Is accomplished. To the extent
that iirty deficiency in such reimbursement
remains as of June 1, 1987, the amount of the
remaining deficiency shall then be trans-
leered to the Upper Colorado River Basin
fund from net revenues derived from the
retie of electric energy generated at Hoover
Darn.
SEC. 8. Nothing in this Act shall be con-
strued to alter, amend, repeal, modify, or be
in conflict with the provisions of the Colo-
men River Compact (45 Stat. 1057), the Up-
per Colorado River Basin Compact (63 Stat.
31), the Water Treaty of 1944 with the
United Mexican States (Treaty Series 994),
the decree entered by the Supreme Court of
the United States in Arizona against Cali-
fornia, and others (376 U.S. 340), or, except
as otherwise provided herein, the Boulder
Canyon Project Act (45 Stat. 1057), the
Boulder Canyon Project Adjustment Act
(54 Stat. 774) or the Colorado River Storage,
Project Act (70 Stat. 105).
9. The Secretary is directed to?
(a) make reports as to the annual con-
sumptive uses and losses of water from the
(eioredo River system after each successive
e-yazir period, beginning with the five-year
aid starting on October 1, 1965. Such re-
porta shall be prepared in consultation with
tee States of the lower basin individually
ti al with the Upper Colorado River Com-
mission, and shall be transmitted to the
President, the Congress, and to the Gov-
ernors of each State signatory to the Colo-
reti o River Compact.
? , b) condition all contracts for the deliv-
ery of water originating in the drainage basin
of the Colorado River system upon the avail-
ability of water under the Colorado River
Compact.
SEC. 10. (a) The Secretary shall propose
criteria for the coordinated long-range op-
eration, of the reservoirs constructed and
operated under the authority of the Colo-
rado River Storage Project Act and the
Boulder Canyon Project Act, consistent with
the provisions of those Statutes, the Boulder
Canyon Project Adjustment Act, the Colo-
rado River Compact, the Upper Colorado
River Compete. and the Mexican Water
Teeaty. To effect in part the purposes ex-
praised in this paragraph, the criteria shall
ineiee provision for the storage of water in
storage units of the Colorado River Storage
a'rejeet and releases of water from Lake
_rewell in the following listed order of
jiriority:
(I) Release to supply one-half the defi-
cleacy derieribri in article Iii(c) of the
Colorado River Compact, if any such de-
ficiency exists and is chargeable to the States
of the upper division.
(2) Releases to comply with article M(d)
of the Colorado River Compact.
(3) Storage of water not required for the
releases specified in clauses (1) and (2) of
this subsection to the extent that the Secre-
tary, after consultation with the Upper Cole-
rado River Commission and representatives
of the three lower division States and taking
into consideration all relevant 'factors (in-
cluding, but not limited to, historic stream-
flows, the most critical period of record, and
probabilities of water supply), Shall find to
be reasonably necessary to assure deliveries
under clauses (1) and (2) without impair-
ment of annual consumptive uses in the up-
per basin pursuant to the Colorado River
Compact: Provided, That water not so re-
quired to be stored shall be released from,
Lake Powell: (i) to the extent it can lea
reasonably applied in the States of the lower
division to the uses specified in article III(e)
of the Colorado River Compact, but no such
releases shall be made when the active stor-
age in Lake Powell is less than the active
storage in Lake Mead, (ii) to maintain, as
nearly as practicable, active storage in Lake
Mead equal to the active storage in Lake
Powell, and (iii) to avoid anticipated spills
from Lake Powell.
(b) Not later than July 1, 1968, the cri-
teria proposed in accordance with the fore-
going subsection (a) of this section shall
be submitted to the Governors Of the seven
Colorado River Basin States and to such
other parties and agencies as the Secretary
may deem appropriate for their review and
comment. After receipt of comments on the
proposed criteria, but not latex than Janu-
ary 1, 1969, the Secretary shall adopt appro-
priate criteria in accordance with this sec-
tion and publish the same in the Federal
Register. Beginning January 1, 1970, and
yearly thereafter, the Secretary shall trans-
mit to the Congress and to the Governors
of the Colorado River Basin States a report
describing the actual operation under the
adopted criteria for the preceding compact
water year and the projected operation for
the current year. As a result of actual op-
erating experience or unforeseen circum.
stances, the Secretary may thereafter modify
the criteria to better achieve the purposes
specified in subsection (a) of this section,
but only after correspondence with the Gov-
ernors of the seven Colorado River Basin
States and appropriate consultation with
such state representatives as each governor
may designate.
(c) Section 7 of the Colorado River Stor-
age Project Act shall be administered in ac-
cordance with the foregoing criteria.
SEC. 11. (a) Rights of the upper basin to
the consumptive use of water apportioned
to that basin from the Colorado River system
by the Colorado River Compact shall not be
reduced or prejudiced by any use of such
water in the lower basin.
(b) Nothing in this Act shall be construed
so as to impair, conflict with or otherwise
change the duties and powers of the Upper
Colorado River Commission.
Sec. 12. Except as otherwise provided in
this Act, in constructing, operating, and
maintaining the central Arizona project, the
Secretary shall be governed by the Federal
reclamation laws (Act of June 17, 1902; 32
Stat. 388 and Acts amendatory thereof or
supplementary thereto) to which laws this
Act shall be deemed a supplement.
SEC. 13. (a) All terms used in this Act
which are defined in the Colorado River
Compact shall have the meanings there
defined..
(b) "Main stream? means the main stream
of the Colorado River downstream from Lee
Ferry within the United States, including
the reservoirs thereon.
(c) "User" or "water user" in relation to
17,
1 9 67
main stream water in the lower basin cleans
the United States, or any person or legal
entity, entitled under the d Tree of th Su-
preme Court of the United eltates in Are:ion.).
against California, and otheis (376 U.S. 340),
to use main stream water when avniable
thereunder.
(d) "Active storage" meema that an ount
of water in reservoir store ;e, exclusiee oi
bank storage, which can be ieleased through
the existing reservoir outlet works.
(e) "Colorado River. Basis States.' means
the States of Arizona, California, Colorado,
Nevada, New Mexico, Utah, and Wyoming.
SEC. 14. There is hereby authorized an be
appropriated, out of any moneys in the
Treasury not otherwise appropriated, such
sums as may be required t carry on. the
purposes of this Act.
USE OF CENTRAL INTELLIGENCE
AGENCY FUNDS
Mr. YOUNG of North Dakota. Mr.
President, it is understand.Lble that tnere
would be concern and _controversy over
recent disclosures that Central Ini.t.11iLi
gence Agency funds were being usea to
help to pay the costs of tht National Stu-
dent Association representatives at itu-
dent conferences all over the worlti.
One of the best explanations and j,isti-
fications for this use of funds is :ion-
tained in a colurnn entitled "The CIA-
Students Controversy," mitten by David
Lawrence and published in the Washing-
ton Evening Star of February 16, 19E7.
I ask unanimous convent that the
article be printed in the RECORD.
There being no objection, the article
was ordered to be printed in the REC0RD,
as follows:
? THE CIA-STEDENTS CCI,r1MOVERSY
(By David Lawrence)
The United States is today at war with
Communist enemies. The gathering o in-
telligence is an important factor in the eon-
filets that are arising throughout the world.
Yet when the Central Intelligence Agency
endeavors to cdnect information by enlie
the co-operation of American . student orga-
nizations, a hullabaloo is raised and members
of Congress start talking about derog dory
investigations that could fru.trate Ante) eia's
information-gathering in foeelgn coun ries.
Both the Russians and the Red Chinese
have infiltrated student organizations in the
United States which are fomenting das cord
and starting demonstration; to help turn
public opinion against the American go, ern-
meat. The U.S. Central Intelligence Agency
has by no means engaged in any such activi-
ties abroad, but has merely sought thc co-
operation of American studei its visiting for-
eign lands so as to help the government
here to keep abreast of what is going CM in
various countries.
While the United States g evernment ever
since 1952 has spent approximately $300.000
a year to pay expenses of the information-
gathering operation by American stuneits,
the Soviet Union has been f tre nishing at cast
$10 million to $20 million a year to stulent
organizations that do not just gather in-
formation but actually engat e in subversive
activities in other countries.
The CIA drew the line?it ilid not ask any
student to participate in subversive activities
of any sort abroad, but meeely to let the
United States government It aow what was
happening in student eirelee which cold
affect the United States. This is impcm.arit
because of the internationsi scope ar the
student associations which nada into virtu-
ally every part of Europe, A-la, Africa and
Latin America.
Sanitized - Approved For Release : CIA-RDP75-00149R000800150024-5
Fr,brvary Sanitized - Approved For Releas.e,:,&A-11RFE'K5142149R000800150024,4?,,I
CONGRESSIONAL rcr,t,
17, 1967
and again, the United States has
confronted by "student demonstra-
; " that have been hostile to American
including ambassadors and minis-
To find out how these activities are
01,,nized is important to the government
here so that steps can be taken to anticipate
and to thwart such moves if possible
The Federal Bureau of Investigation oper-
atcs within the United States, while the CIA
, .ries on its worlz only in foreign countries.
Lie FBI has repeatedly told members of
Congress about the activities of students
Inside this country who are members of the
Communist party or who are affiliated with
groups financed by the Soviet Government.
I; there are to be investigations in Con-
gress of what the CIA has done to gather
i...crmation, it would be logical to expect a
ln.noughgoing inquiry also into the leader-
-1 and financing of certain student groups
? _bin the United States. Some of them
--ye been in contact with members of Con-
and have submitted demands that
ra really in the interest of Communist
governments abroad.
The CIA has had nothing to do with the
,;.rations of student organizations within
...lc United States itself. Whatever financial
;..,:p it has given has been to officers of stu-
dent associations who have been in charge
of matters related to trips of American stu-
dents abroad, particularly to Communist
countries.
Many an American businessman and other
travelers have been interviewed by the CIA
after their return from Communist lands,
and there is no impropriety in giving one's
own government any information that
might be useful to it in the war against
c, imunism.
The FBI undoubtedly has plenty of evi-
dence of the activities of the Soviet gov-
ernment inside the United States among
student organizations. A comprehensive in-
cc.ry into the "student demonstrations" in
recent months would expose to public view
what the United States is up against in
foreign lands as well as inside America.
It is amazing to find that some members
of Congress are so unfamiliar with the per-
plexing problems of gathering intelligence
in other countries that they are preparing
nriwitGingly to handicap the United States
government in its efforts to learn what is
being done to damage American interests
throughout the world.
Second, we are proud of our competitive
society. Competition is basic to an efficient
and free economy and opportunity is funda-
mental to competition. The systematic ex-
clusion of any ethnic group from full par-
ticipation is not only morally and politically
wrong, hut economically wasteful as well.
What sense does it make to ignore or
minimize the potential contribution of 24
million Americans? What enterprise would
squander more than ten percent of its po-
tential labor force, its future management,
or its b adding researchers and technicians?
Yet this is the consequence of persistently
denying minority Americans equality of op-
portunity in education and employment. In
fact, the consequences are more costly for
a society than for an individual enterprise.
An enterprise incurs only the penalty of lost
profits through squandered resources. A so-
ciety incurs far greater costs because less-
than-equal opportunity breeds economic
waste through paternalism, unemployment,
poverty, and unnecessary social and political
unrest.
Freedom of entry?freedom of competitive
opportunity?is a key element in the success-
ful operation of any free market. A society
makes the most of its endowment, human
and material, only when its resources are
free to flow to their most productive uses.
This economic truism is the pragmatic justi-
fication for ensuring all citizens equal access
to jobs, education, and public facilities. And
in it also lies the key to the argument for
access -?,;o private goods unhaimpered by arti-
ficial restraints, for in a free society, private
goods are a major incentive. They are the
rewarth earned on the basis of achievement
by those who have contributed to prosperity.
Public goods and private goods differ, and the
appropriate criteria for "equal" access to
each differ also, but they are two sides of the
same coin. We diminish our productive ca-
pacities by arbitarily limiting access to
either.
? ?
The opportunity to secure private goods
and services is one of the chief motivations
used by an enterprise economy to extract
maximum effort from its participants. Re-
wards for productive and useful effort come
in the form of the abiliq to satisfy personal
or family wants?in other words, in money.
We have equal access to private goods and
services only insofar as we can bid equally
for them, up to the limits set by the amount
of money we have.
Discrimination destroys this "equal" op-
portunity to gain for oneself an amount of
material satisfaction commensurate with the
reward earned. It in effect establishes a
second incentive structure for the disad-
vantaged?one which does not adequately
reward achievement. For even if money
wages paid a minority worker are equal to
csnace. he is
raOre r&si man st,(v_ sn one arntytin
of satisfaction his wages can purchase. He
may most wish to purchase a suburban
house or send his child to a fine private
school. If he cannot, he must settle for
second best. His money buys "less," in that
he cannot get maximum satisfaction per dol-
lar. His incentive to earn by contributing
to production is seriously diminished, and
the entire society pays the price in lost out-
put.
To operate at peak economic and social
efficiency, it is necessary to remedy this eco-
nomic impediment, But private consump-
tion is too intimately entwined with per-
sonal liberty, involving as it does the eco-
nornie determination of an individual's life
style, that we must make sure that the
"cure" does not merely compound the dis-
ease. Every effort should be made to secure
cooperation by all citizens in ending dis-
crimination. Where minor discomfort will
attend the major gains to be secured by
eliminating discrimination in access to pri-
4,1"
*RANDOLPH CITES U.S. CHAMBER OF
COMMERCE POSITION IN SUP-
I'OR,T OF CIVIL EQUALITY FOR
ALL AMERICANS
Mr. RANDOLPH. Mr. President, as a
cosponsor of the bill introduced by my
ey;.':.ea.gu.e. from1V1f.ebigart [Mr,
. . ,
sage on civil rights, I bring to the atten-
-tion of Senators, excerpts from the third
:report of the Task Force on Economic
Growth and Opportunity, of the Cham-
ber of Commerce of the United States.
These constitute cogent comment.
I ask unamious consent to have this
material printed .at this point in the
RECORD.
There being no objection, the excerpts
were ordered to be printed in the RECORD,
as follows:
ExcEapTS FROM INTRoDUCTION TO "THE DIS-
ADVANTAGED POOR: EDUCATION AND EMPLOY-
.mENT''; THIRD REPORT, TASK FORCE ON
tCONOMXC GRoWv:I AND OPPORTUNITY;
CHAMBER OF COI'mERCE OF THE UNITED
STATES
First, the moral and political principles
tiils nation are predicated upon a belief
in ec;nality of opportunity for all Americans.
vate goods or where the 'private" goods or
services in question are publicly BD !port ed
or subsidized in part by public fund . or by
tax concessions, then the balance n list be
struck iri favor of eliminating the 0,1sex11111-
nation by law, if all else sills. Equ ly for-
bids the use of funds derived in pa from
Minority groups to std Tort bleu vutiams
which disadvantage them, and Commt sells e
militates against the use of public iumi3
to support practices which dimin an tne
wealth of the society.
TRADE BARRIERS T)CALIF' ) i
INE
Mr. MURPHY. Mr. President, after
weathering their experience unCer the
Articles of the Confederation, our fore-
fathers rightfully deemed it Ultdesiranlit,
unwise, and downright foolish to permit
Individual States to erect artificif trade
barriers to products coming frorl otn..r
States. As a result of this exp-
the power to regulate commerce is-twain
the States was granted to the Federal
Government in the Federal Constitution.
Fifty individual Statee have thus been
molded into one viable, and common 11.1-.
tional market. Trade in commerce
moves freely between the State -I. The
wisdom of such a policy is self-evident.
This Nation has grown and has created
for its people prosperity unparalleled
In the history of manknd.
In my State, agricull ure is our emanig
Industry. It is an iratustry of over
billion annually. The wine industry
plays a major part in California's great
agriculture. Cali form a wine a 'acorns Ls
for approximately 85 i.ercent. of all wine
produced in the United States. It las
received national asid inteniatiotial
acclaim.
Because this is such an important a-
dustry in my State, I am naturrhy con-
cerned about discriminatory trrde bar-
riers that some States have erected
against California wines.
I do riot believe it was the iatention
of the 21St amendment to the Constitu-
tion to create trade barriers that re-
strict the free movement of products De-
tween the States. I therefore nearnly
endorse the action of the California
State Legislature in locusing the coun-
try's attention on this serious matter.
Consistent with the Nation'a philos-
*ophy on free trade among the States, the
farmers and vintner: deserve lair and
equal treatment at the hands of all their
sister States.
?
nation of discriminatory trade rarr era
against California.
Mr. President, I ask unanimous con-
sent that two resolutions on this sub-
ject, adopted by the California Legisla-
ture, be printed in full in the RECORD.
There being no objection, tl-K, resolu-
tions were ordered to be printed in the
RECORD, as follows:
ASSEMBLY JOINT R..:50LUTION Nio. 2
Joint resolution relati-e to discriminatory
trade barriers against Califorrnr wines
Whereas, Grapes and wine cons:Itute one
of the major agricultMal industr es of the
State of California, anti California prod-ices
approximately 85 percent of all eine pro-
duced in the United States; and
Whereas, The grape and wine cid ailed
industries also enhanco the scan:mile wel-
fare of the state by the -mploymer t of many
thousands of people; ?
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