U.S. KEEPS FUNDING TIE TO RFE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01601R001400180001-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: January 8, 2001
• Sequence Number: 1
• Publication Date: January 26, 1971
• Content Type: NSPR

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'?? ? AssC,7,!2,.:2:a Pass-
The NiNon. adminitt'ation
-ruled ye-Wrday that Radio
-Free Europe and Radio Li-
berty "are not educational or
private voluntary organi7a-
Aions? and an established pal-
-Icy of denying CIA financing
to them therefore does not
'
.aPP13". ?
, . At the same time the ad-
ministration--through a State
Departinent spohcsman?a f-
?firmed its intention to Con-
tinue the policy th at was
worked out under the leader-
ship of Nicholas Del). Katzen-
bach, then Under Secretary of?
?State, after a national blowup
over CIA financial payments
to student organizations and
other groups, - - - ? '
Sen. Clifford P. Case (R-
N.J.), said Saturday that Radio
Free Lurope and Radio ,Li-
berty, which beam programs
into Communist Eastern Eu-
had spent $3,4., million in
1D09 and that more than $30
million of that had come from
the Central Intelligence Agen.,
cy. . ? .
; Case called for an end to
the secret subsidy and for
direct, open financing' of the
stations through congressional
action. .
? . State Depaitment press of-
ficer Robert J. McCloskey
said the Hatzenbach policy
'covers "the whole question of
funding for domestic educa-
tional and private voluntary
organizations." ' ? .
As to how the stations have
actually been funded or what
their money supply might be
1 in the future, McCloskey said
!`Nro comment."
I.
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CONGRESSIONAL )11',C010) - SENA'; E
S. 11, S. 12, S. 13, S..14, S. .AND
S. 1C---INTRODUCTION OF BILL
REPRESENTIO Cr A CONTINUATION
OF mAiTER's CONSIDERED' BY
' THE SPECIAL STIBC07,1'?,HTTEE. ON
CRINIINAI.' LAWS A/-TD PROCE-
DURING THE 91ST CON-
GRESS
?
Mr. MeCLELLAN. Mr. President, I in-
traduce several items of legislation. Each
represents a continuation df matters con-
sidered by the Spacial Subeommittce on
Criminal Laws and Procedures during
the 91st Congress. They are as follows:
Firs;b. S. 1.3,.the Physical Evidence Act
of 1971, which provides for the issuance
of subpenes for the limited detention of
specified individuals for. obtaining evi-
dence of identifying physical character-
istics in the course of certain criminal
Investigations, and for other purposes;
'Second. S. 1.1 and, third, S. 12, al-
ternative versions of the Wagering Tax
Act Amendments of 1971, which would
amend the internal Revenue. Code of 1954
to modify the provisions relating to taxes
on wagering, to insure the constitutional
rights of taxpayers, to facilitate the col-
lection of such taxes, and for ether such
purposes; -
Fourth. S. 14, the Student Disturb-
ances Act of 1971, which would prohibi
the (Vs:tin-Alen of federally assisted hasti-
tv.tions of hie-her education, to provide
for the enforcement of such prohibition,
and f Or other purposes;
Fifth. S. 15, to amend title NH of the
, Organized Crime Control, Act of 1070, to
empower the Commission on Individual
Rights to consider individual security,
. and for other purposes;
Sixth. S. RI, which would amend title
IX of the Organized Crime Control Act
of 1970, to provide for injunctive and'
other civil relief for those victimized by
organized crime, and for other purposes.
Mr. President,- each of these items of
legislation is introduced as a study bill. I
finl not committed to their enactment in
their present form or indeed to their en-
. .actment at all. I cli; expect, however, in
lilac coming months of this Congress that
the subcommittee will hold hearings Oil
these and related loatters. I shall also,
at a later time, address the Senate sep-
arately on each of these items of
le gisla ti on.
' The PRESIDENT pro tempore. The
hills will be .received and appropriately
ef errod. ?
The bills:
' S. 11, A bill to amend. the Internal Reve-
nue, Code of 195,1 to modify the provisions
. relating to taxes onowagering to insure tile
coastitational righits of tavpayers, to
tate the collection of such taxes, and for other
purposn;
S. 12. A bill to amend the .Tnternal P,eve-
ue Code of 1954 to modify the provisions
relating to taxes on wagering to. Insure the
, constitutional rialits of taxpayers, to men!-
tate tit; collection of such taxes, and for other
purpc;ses;
5.13. A bill to amend title 18, United Ctaies
? Code, to provide for the issuance of subpenas
for the limited detention of parlteularly de-
seribed or identified individuals for obtaining
ovideroc,- of identifying physical character-
1.stics in the course Of certain criminal in-
Yesti4;e tions, and for other purposes;
S. it. A bill to prohibit the dis,ruption of
federally .assisted institutions of higher edu-
-
cation, to provide ? for the enforcement of
such prohibition, and for other purposes;
S. 15. A bill to :mend title, XII of the Or-
tanized Cthrle Control Act of 1070, and for
other purposes; .and
5.-16. A bill to amend. *title IX of the Or-
ganized Crime Control Act of 1970 to provide
civil remedies to victims of activities pro-
hibited by said title, and for other purposes,
introduced by Mr. MoCtELLAN, for himselY
and Mr. 'Pere read twice by their
titles and meferred to the Committee on the
Judiciary.
oaiDER. YotL REFERRAL OF S. 11 and.
S. 12 TC) THE COMMITTEE ON FI-
NANCE FOLLOWING- THEIR PRES-
ENT REFERENCE
Mr. DieCLELLAN subsequently said:
Mr. President, I ask unanimous consent
that when two bills which I introduced.
this morning, which are now at the desk,'
numbered tentatively, I believe, S. 11 and
S. 12, shall have been considered and re-
ported by the Committee on the Judi-
ciary, to which I Mil advised they are
now being referred, they be thereafter
referred to andoonsidered by the Com-
mittee cm Finance. ?
The PRESIDING OFFICER.. Without
objection, it is so ordered.
?
S. 18----31cTilODUCTIO:a; OE is DILL TO
BRING RADIO FREE EUROPE .AND
RADIO LIIIERTY 'UNDER CON-
GRESSIONAL SCRUTINY
Mr. CASE. Mr. Presidentai introduce
a. bill to bring Radio Free Europe and
Radio Liberty under the authorization.
and appropriation process of the, Con-
gress.
During the last 20 years, several hun-
dred mifflon dollars in U.S. 'Government
funds have been expended from. secret
CIA budgets to pay almost totally for t1-1
costs of these two radio stations broad-
casting to Eastern Europe. In the last fis-
cal year alone, over $30 million was pro-
vided by CIA as a direct Government
subsidy; yet at no time was Congress
asked or permitted to carry out Its
traditional constitutional role of approv-
ing the expenditure.
My bill would amend the U.S. Infor-
in ation and Educational Exchange Act of
1943 to authorize ftlriCiS to Radio Free
Europe and Radio Liberty in fiscal 1972.
It would.also provide that no other U.S.
Government funds could be made avail-
able to? either radio station, except under
the provisions of the Information and
Educational Exchange Act.
I plan to ask that those administra-
tion officials concerned with overseas in-
formation policies be called to testify be-
fore Congress on the financial needs of
Radio Free Europe and Radio Liberty.
Without committing myself to a particu-
lar level of funding, my prOposal tenta-
tively calls for lin authorization of $30
million. This figure would, of course, be
subject to change as ,more information
becomes available..
Radio Free Europe and Radio 'Liberty.
both claim to be nongovernment?al or-
ganizations sponsored -by ...private ' con-
tributions, but available sources Indi-
cate direct CIA subsidies pay nearly all
their costs According to returns 'filed
with internal Revenuteef orm
their combilic pera nag coscs I or isca
1900 Nero almost $34 mil1ion--$21,109,-
935 for Radio Free Europe and $12,037,-
401 for Radio Liberty.
Under- the auspices of the Advertising
Council, radio Free Europe conducts a
yearly, multimedia "advertising" cam:-
paign.
I have been advised that: between $12
million and $20 million in free media
space is donated annually to this
paign while the return, from the public
Is apparently less than 0100,000. Addi-
tionally, both Radio Free 'Europe- and
Radio Liberty attempt. to raise money
from corporations and foundations, but
contributions from these sources report-
edly pay only a small part of their total
budgets.
'The bulk of Radio Free Europe's and
Radio Liberty's budgets, or more than
$30 million annually, comes from direct
CIA subsidies. Congress has never partic-
ipated in authorization or approoriat?ons
of funds to Radio Free Europe or Radio
Liberty, although hundreds of millions
of dollar-sin Government funds have been
spent during the last 20 years.
I can understand why covert funds
might have been used for a year or two
In an emergency situation when extreme
secrecy was necessary and when no other
Government funds were available. But
the justification for covert funding has
lessened over the years as international
tension has eased, as the searee.y sur-
rounding these radio stations has melted
aisvay, and ar_l more open means of fund-
ing could have been developed. In other
words, the sxtraordinary chicumstances
that might; been thought to justify
circuraventicn of constitutional prt-iaoi-iF9S
and congressional approval no longer
exit.
In fact, after disclosure in 1907 of CIA
funding of the National Student Asso-
ciation, a Presidential committee made
up of John Gardner, then Secretary of
Health, Educaltion, and Welfare, Richard
Helms, then and now Director of CIA,
and Nicholas Katzenbach, then Under
Secretary of State, recommended that
"no Federal agency shall provide covert
financial assistance or support, direct or
indirect, to any of the Nation's educa-
tional or voluntary orgailizations"---and
that "no proarams currently would_ justify
any exception to this policy." On March
29, 1907, President Johnson accepted the
committee's recommendations and di-
rected they be.implemented by all Fed-
eral agencies. . .
Legislation similar to my proposal will
'shortly be introduced in the House of
Representatives by Congressman OGDEN
H. 11.11In Of New York.
I ask unanimous consent to have the
bill printed at this point in the RI-icor:D.
The PRESIDENT pro tempore. The
bill will be received and appropriately
referred; and, without objection, the bill
will be printed in the Racine. ?
The bill (S. 18) to amend the U.S. In-
formation and Educational Exchange
Act of 19,19 to provide assistance to Ra-
dio Free Europe and Radio Liberty, in-'
?troduccd by Mr. CASE, Vlae resolved, read
'twice by its title, referred to the Com-
mittee on Foreign Relations and ordered
to be printed in the Recoaa, as follows:'
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OUTL101.1111-01?iLl
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091 fyvvx.
"(WV ti,tho
Radio Free Europe
paled in .authorization 6r. ap- -the Cerisulate. in Munih c is as-
.
Now In
propriations of funds ,to ,Radio signed to go over Program con-
CIA Sitere, Case Warns .Fite Europe or Radio Liberty, tent to make it conform to U.S.
. . although hundreds of millions of
41,
gOVet 'mien po.lcy, Locy? point
dollars ? in government.' :funds
! h.ist . . \
Washifigto:t Our of The'Sun have been spent out Because classified as yell
.during lfle
20 years, sSenator :Case said.
Washington, Jan. 23?Senator
afford P. Cc:se (R.,- -N .J.) ,n I Can On'Tz't?,s.ta,.nl*,'hy c2v.ert
, flounced today that ho will in- funds rit.ight:.have.L.en used for
Aroduce legislation 'Monday to a Ycar 0.r? .tv..?;0 "ctne.rgenqY
situotion v,?11(1) ex_treri_re secrecy
prolde for ?Pen cOngrC5SiOnaI
: ?financing of Radio Free Europe va'''? 11-Ctcess'?'-rY -ari.::3:::'.chen
no
other government. .funds
- and Radio Liberty,
?va lie Went on.. .
Mr. Case explained that, if
approved, the. legislation would
But no.?;.the seuator as.sertCd,
!Le.s.seil 0, 1. .
.remove the. stations from the
need for secret funds from the
? Central Intelligence Agency. Ile
? said that in the last fiscal year.
?the CIA provided a direct sub:
? Isidy of million to the stations
which broadcast to the Soviet
Union and five Eastern Euro-
' pean Communist countries.
? Although both Radio Free Eu-
rope and Raclin Liberty c.laim to
be . non-governmental organiza-
tions- sponsored by private con-
tributions,- the- senator said that
"available sources" indicate the
CIA pays almost all their costs.
? Produces Tax Returns
He produced figures from re-
? -turns filed with the Internal
Revenue Service showing that
the combined operating costs
for the stations in fiscal. 1i9 was
almost $24 million ($21,M,935
as ,tinelassificd government. in-
formation is, provided, security
porsimel ein.ek out the stations,
thp same sourcies report.
FurIher,.-Thev say U.S.. em-
bassy .-officiaN ? from Eastern
Europz get briefings at Radio
Free. Europe.' ,The station; in
turn, uses the ceded cornmunica-
tIons-of the Munich consulate to
with the.. leisening ef interna- keep in touch with Wastungton,
the_sources report.
. l'heogla their. studios are In
Germany, the transmitters for
the. station's are in Spain, Por-
tugal and Taiwan, all countries
with special arrati7;cinehts with
miiht have.; been thouad.il to the United Statcs, the so:Juccs'
justify circuinvention of con- report.
stitutional processes and con- . 1z331 Panel's
gressienal -approval no longer In iNy, afier disclosures of /
Scooter Case said.? CIA financing of _the National V
;The senator not critical stodent k.sociation, a presiden.,
0f the r'(-rck of the station5-.' 15ca committeo made up of Jim
which have their main offices Gardner, then Secretary of
and studios -1\int?11' Ger. He.alth, Educatibn and welfare,
many. His legislation, in fact, Richard Helms, ciA director,
would authorie million for
work. He and -Nicholas de B. Ilatzenbach,
continuation of their
then under secretary of State,
simply wa.nts Congress to si.iper:
recomn-,endcd that no federal
vise the spending or tax payers ageocy should provide covert
Ilonal tensieei. and the melt-
ing of secrecy, saMe--'.pleans of
open finanCi.!ig of stations
should have. been p;?ovided.?
-"In.-other words,' the. extra-
ordinary cli'curntances".- that
monoy.. .
Radio Free E'_11.0pC1, started in ;
*?- ' funds for any of the nation's
for Radio Free Europe and $12,- 1951, broadcasts to Bularia,
l n ' ed-uci_.t. i o.n al
ol unay ,or
837,401 for Radio Liberty). fungary,. Poland, Czecoslo- t1.`i .s.i
pi0sLem, Johnson200,i?pa-
Though a national advertising val'It and Ilomanta. Radio
campaign under the auspices of Liberty, opened a year later,
the Advertising Council uses concentrates only on the Soviet
somewhere between $12 and $20 IfI1i011. :In 1133, Radio Free
Europe was criticized- for rais-
million in free media space ?to.
solicit. contributions for the sta- ing false hopes of help for the
Hungarian rebels. Since then,
tions, Mr. Case said, returns
from the public amount to less
thetrovrsial. stations hove been his con-
than' $100,000: ????' -??
? The stations raise the rest of 1111-?rIllect congressional sonic-
their budgets from corporate
close tie-up between the stations
aini foundation contributions, he
said. and the government.
''Congress lros never partici-
A full-time liaison officer from other government channel.
' _
the committee's recommenda-
tions.0n March 29, 1037, he or-
dered all federal agencies to im-
plement them.
Senator Case's. hill, similar Lb
one grortly to -be introduced in
the House by Representative
02,,denR. Heid (R., N.Y.), would
provide funds for the stations
out of the Informational and
Educational Exchange. Ace. It
would forbid funding by- any
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P,
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By BENJAMIN WELLES -
. Special to The 'Vew York Tinos
WASHINGTON, Jan. 23 ----. ion al security Council. Ilow-
Senator Clifford P. Case, Re- ever, disclosure to Congress is
publican of New Jersey, charged limited to a handful of senior
I
gene Agency bad spent severaI today that the Central Intelli-
. legislators on watchdog com-
mi.tter ofciaitcrllahouett.e,ii,?
nee
hundred 11-1illi?11 dollars over the Agency and Radio Free Europe
last 20 years to keep Radio Free both declined to comment to-
Europe :and Radio Liborty func- claY on Senator Case's state-
-tioning. ' ? - - - :. mot. Efforts to elicit comment
-, from Radio Liberty were un-.
:
7, Mr. Case, a memlitT of thei availing.
ti :Appropriations and Foreign Re- Covert C.I.A. funding of the
lations Committees, said that '
two stations has, however,
he would introduce. 1,? tislation -been an open secret for years,.
altemah the C.I.A in accord -
-Monday to bring
Government an--. 1,,rith standing policy, and
tt,.,
spending on the two stations tho two stations themselves
Under the authorization and ap- have consistently . refused to
propriations. process of Con- discuss either their operations
Tress. Representative Ogden R. heir fund1n7.
or Cri...iting return; filed with the
Reid, Republican of Wostches- Internal IZMI`3111C Service in the
ter, said today that he would 1939 fiscal year, Mr. Case said
)ntrodtice similar je)siatioa in that the stations' combined
the llouse. operating costs that year to-
taled $33,997,336. Of .this, hE
. ,Radio Free Europe, founded said, Radio Free Europa spent
,in 1950, mid Radio Libettv. $21,109,935 and Radio Liberty
prmed a. year later, bothhave ?
S12,887,401..
powerful transmitters in Mun- Fullds SePglit by Advi'ilscillen't
"The bulk of Radio Free Eu-
ion, West Germany, staffed by ro?
pes and Radio Liberty's
several, ? thousand American budgets, or more than $30-mill-
technicians and .refUgeos from ion annually, comes from direct
Eastern Ely,-opc,, ? - C.I.A. subsidies," Mr. Case
' charged."Cont,ress has never
: Radio .Liberty broadcast,. ?? ? " t. .- ? -&
;. . t ? Soviet ' paratipated in authorization of
only into the Union, Rar? appropriations of funds to
die Free Europe to other. East- R.E.E. or RI-, althongh bun-
,ern European countrits except circles of millions of dollars in
STATI NTL
Bat; en Other Funds
At the same time, Mr. Case
said, his proposal would-pro-
vide that "no other" United,
States Government fundS could
Solved the ? tough::
one::," one source said, "but
they were tinder.suel. pressm?e'
from Johnson to get their re?
port out and get the heat from
be made available to either sta-Congress and the public cut off
tion except under the provi-' that they didn't solve the fund-
sions of the att. lie also saidjng of the stations. They turned
that he wonld ask that Admin- it over to another committee."
istration officials concerned The second committee, whose
with overseas information poli-
cies be called to testify in order
to determine the amount'need-
ed for the stations' operations,
members these sources declined
to identify, worked over a year -
and then turned in secret
recommendations to Mr. John-
"I can prkeertan
sd why co 01 However, Mr. Johnson
yea funds might have beenlpigeonholed the recommenda-
used for a year or two in an,tion5; and finally left the
emergency situation when ex-'prohleni for . the - incoming
treme secrecy was necessary Nixon Administration to solve,
and when no other Government the sc?utees' said.
funds were available," Mr. Case
said,
But, he went on, the justifi-
cation for covert funding ha
lessened over the years as in-
ternational tension has eased,
vs the secrecy surrounding the
stations has `melted away," and
as more open means of funding
could he developed.
"In other words," he said,
"Lhe extraordinary circumstan-
ces that - might have been
thought. to justify circumven-
tion of constitutional processes
and Congressional approval no
longer exist."
John Created XXX ?
Mr. Case pointed out that in
'1`ftgoslavia. ,Government funds have been 1067, after there had been pub-,
,- Both orgaltizations have of , spent durirng the last 20 years." lie disclosure that the C.I.A.
- Mr. Cas. pointed out that 'flees in New York and. purport - ? - P had been secretly funding the
,... - -Radio Free Europe. conducted
to be privately endowed with National Student Association,
a yearly camoalPn for public
funds coming exclusively from
'foundations, corporations and
the public. Roth, however, are
extremely reticent about the de-
tails'of their financing.
Senator Case notedi in a
'Statement that both Radio Free
;Enrope and .Radio Liberty
."claint to be nongovernmental
contributions under the ausices
of the Advertising Council. Be-
tween $12-million and $20-mill-
'Ion in free media space is do-
nated annually to this cam-
paign, he said, but the rreturn
from the public is "apparently
less than? $100,000."
Furthermore, he said, both
stations attempt to raise money
from corporations and founda-
organizationssponsored by tions but contributions from
private contributions." How- these sources reportedly pay
. over, he went on, "available only *a small part of the sta-
sources indicate direct C.I.A. tions' total budgets.
subsidies pay nearly all their Senator Case -said that his
costs."
. proposed legislation would seek
Thr*. Senator said that the to amend the United .States In-
Central Intelligence Agenc-/ formation -and Educational Ex-
provided the stations with $30- change Act of 1943 to author-
exceptions to this policy."
,million in the last fiscal year ie funds for both stations in
without formal Congressional
toe fiscal year beginning next
approval.
Disclosures Itest'ricted
Under %)i,
Agency's o.M`Ittles,`"tt
activities----such as covert fund-
are approved by the
'July 1. Iiis proposal would call
for an initial sum of S30-mil-
lion, but he said that the sum
!add at AD_
erease- 01/0
President Johnson created a
committee that was headed by
Nicholas de E. Ratzenbach, the
Under Secretary of State, andv)
that included Richard Helms,
head of the C.I.A., and John W.
Gardner, the Secretary of
Health, Education and Welfare.
He further, noted that on
March 29, 19;67, Mr. Johnson
publicly Excepted the com-
mittee's recommendation that
"no Federal agency shall pro-
vide covert financial assistance
or support, direct -or indirect,
to any of the nation's educa-
tional or voluntary organiza-,
tions" and that "no programs
People familiar with the, op-
erations of Radio Free Europe
and Radio - Liberty noted that
both had been started at the
peak of the Cold War and had
ust "gone rolling on" ever
kaRDPSODIM011,n01400180001-0
mittee, some ? sources saw, ham
cut off covert funding from
virtually all other recipients. _.
. .
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