ALLEGED GAO REPORT THAT USAID FUNDS ARE DIVERTED TO CIA IN LAOS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
LOC-HAK-22-6-15-4
Release Decision: 
RIFLIM
Original Classification: 
S
Document Page Count: 
5
Document Creation Date: 
January 11, 2017
Document Release Date: 
November 27, 2012
Sequence Number: 
15
Case Number: 
Publication Date: 
April 18, 1972
Content Type: 
MEMO
File: 
AttachmentSize
PDF icon LOC-HAK-22-6-15-4.pdf145.38 KB
Body: 
No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 MEMORANDUM NATIONAL SECURITY COUNCIL ,._? 2504-X MEMORANDUM FOR: MR. KISSINGER FROM: JOHN H. HO"LDRIDGE(Jt.l~ are Diverted to CIA in Laos ` GAO Report that USAID Funds Aleged At Tab I is a memorandum from you to the President responding to his interest in the facts surrounding Senator Kennedy's allegations, as re- ported in the press, that a GAO report charges that USAID funds are diverted to CIA for support of the paramilitary effort in Laos. The CIA memorandum attached explains that the Kennedy allegations are incorrect. Re commendation: That you sign the memorandum to the President at Tab I. NSS, USAID reviews completed SECR No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 "__~ No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 ,~,,&4EMORANDUM THE WHITE HOUSE SECRET THE PRESIi ;r,'i1 HAS SEEN.. INFORMATION April 19, 197zV MEMORANDUM FOR : THE PRESIDENT FROM: HENRY A. KISSINGER SUBJECT: Alleged GAO. Report that USAID Funds Are Diverted to CIA in Laos At Tab A is, a CIA memorandum responding to your interest in the facts surrounding Senator Kennedy's allegations, as reported in the press, that a GAO report charges USAID funds are diverted to CIA for support of the paramilitary effort in Laos. CIA states that Senator Kennedy's allegations are incorrect. \ The $2. 5 ,million referred to in the press report constituted FY 72 medical support to paramilitary dependents which CIA. transferred to USAID, rather than from USAID to CIA as alleged. More generally, beginning in 1969 costs for military and paramilitary dependent relief previously provided by USAID were progressively moved into the Defense and CIA. budgets. As of FY 72, no identifiable costs for medical support to paramilitary dependents have been funded by USAID. USA.ID personnel and facilities do, however, pro- vide some humanitarian services to those paramilitary dependents included among refugees in Laos. SECRET No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 CEWRAL INTELLIGENCE AGENCY WASHINGTON, D.C. 20505 2 1 MAR 1972 MEMORANDUM FOR: Major General Alexander M. Haig, Jr. Deputy Assistant to the President for National Security Affairs SUBJECT Alleged GAO Report that USAID Funds are Diverted to CIA in Laos 1. The President has indicated an interest in the facts surrounding Senator Kennedy's allegations as reported in the press thata General Accounting Office report alleges that USAID funds are diverted to CIA for support of the paramilitary effort in Laos. 2. The allegations are incorrect. The facts are that commencing in 1969 costs for military and paramilitary?dependent relief previously provided by USAID were progressively moved into the Department of Defense and the Central Intelligence Agency budgets. In FY 72 medical support to military and paramilitary dependents is funded by DOD and CIA respectively, completing the transfer of funding responsibility. The total amount of the medical support funding responsibility transfer was 3.6 million dollars, 1.1 million dollars to DOD and Z. 5 million dollars to CIA. This is the 2.5 million dollars referred to in the Senator Kennedy article. It is CIA money being transferred to USAID during FY 72, not a diversion of USAID funds to CIA supported para- military programs as alleged in the Senator Kennedy article. As noted in the GAO report and in the Senator Kennedy article, 1. 3 million dollars of the 2. 5 million dollars has been passed to USAID by CIA. SECRET i,. .t r No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 %)LUIIL 1 No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 ? Ip 3. As of FY 72, no identifiable costs for medical support to paramilitary dependents are funded by USAID. USAID personnel and facilities do provide some humanitarian services to those paramilitary dependents included among refugees in Laos. Thomas H. Karamessines Deputy Director for Plans . F1 nrT No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4 W 1P THE WHITE HOUSE .sa41X 21 March 1972 MEMORANDUM FOR: GENERAL HAIG FROM: PETER FERGUSON SUBJECT: Alleged GAO Report that USAID Fund are Diverted to CIA in Laos Attached is CIA's response to your query regarding Senator Kennedy's allegations reported in the press that USAID funds are diverted to CIA support of paramilitary efforts in Laos. CIA states the allegations are incorrect, that Agency funds were, in fact, transferred to USAID in the amount of $2.5 million for support for military and paramilitary dependent relief in FY-72. Both DOD and CIA have, since 1969, assumed the budgetary responsiblities for funding the relief of military and paramilitary dependents through USAID in Laos. Attachment Tab A Seen by: John Holdridge SECRET No Objection to Declassification in Full 2012/11/27: LOC-HAK-22-6-15-4