LETTER TO HONORABLE WILLIAM J. CASEY FROM RICHARD G. LUGAR

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CIA-RDP84B00148R000400810016-7
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K
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13
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December 20, 2016
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September 20, 2007
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16
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November 8, 1982
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LETTER
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? INDIANA Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 BUT 1710 AND FORESTRY 1113 DIRRBEN OFFICQ BUILDING 6ANKINO. HOUSING. AND URBAN AFFAIRS 1;ASHIHGTO14, D.C. 20510 46 IZJ.ST OHIO STREET. ROOM 447 INDIANAYOUG. INDIANA 46204 CfUfeb, fafez Zenate November. 8, 1982 The Honorable William J. Casey Director Central Intelligence Agency Washington, D.C. 20505 Btxscn>.vs ries+-'tii Z-/297 1 I have introduced S..2919, a bill to provide funds for Soviet studies. I have' introduced this bill with Senator Biden, the ranking minority member on-the Subcommittee on European Affairs. The bill proposes to establish an endowment in the Treasury Department with a one-time appropriation of $50 million. The interest on this principal amount will be provided to the leading umbrella organizations in the field of Soviet studies to help redress our declining capabilities in that area. At current rates of interest,'funds approximating four to five million dollars a year would be disbursed. The Subcommittee on European Affairs received testimony on this subject on September 22. Among those who enthusiastically supported the concept of the bill were Deputy Secretary Stoessel, Admiral Inman, and General Odom. Each testified to the importance of restoring our capability in the field of Soviet studies and to the vital foreign policy, intelligence, and defense needs which this capability will help to meet. I am well aware of the difficult budget situation which we face. Yet I am persuaded that this project is an important one'%which is fully justified even in this time. of scarce federal resources. The proposal has attracted a broad base of support in the Senate, and I am confident that with Administration backing it could become a reality in the near future. For this reason, I am writing to ask your support for this proposal and for your advocacy in Administration budget discussions. I have enclosed a copy of the bill and a brief summary of the problem which it intends to address. Please feel free to contact me if you have any questions about the bill. With continuing best wishes. Sincerely, Richard G. Lugar Chairman, Subcommittee on European Affairs RGL: jbr EXEC RE.G Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 II 97TH CONGRESS 2D SESSION To help ensure the Nation's independent factual knowledge of Soviet-bloc coun- tries, to help maintain the national capability for advanced research and training on which that knowledge depends, and to provide partial financial support for national programs to serve both purposes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 16 (legislative day, SEPTEMBER 8), 1982' Mr. LuGAR (for. himself and Mr. BmEN) introduced the following bill; which was read twice and referred jointly to the Committees on Foreign Relations and Labor and Human Resources, by unanimous consent .A BILE. To help ensure the Nation's independent factual knowledge of Soviet-bloc countries, to help maintain the national capabili- ty for advanced research and training on which that knowl- edge depends,,' and to provide partial financial support for national programs to serve both purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America ? in Congress assembled, 3 ? That this Act may be cited as the "Soviet-Bloc Research and 4 Training Act of 1982". rJ FINDINGS AND DECLARATIONS SEC. 2..(a) The Congress finds and declares that- Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 2 1 (1) factual knowledge, independently verified, about Soviet-bloc countries is of the utmost importance for the. national security of the United States, for the 4 furtherance of .our national interests in the conduct of 5 foreign relations, and for the prudent management of 6 our domestic affairs; 9 10 11 12 13 14 15 16 17 18 19, 20 21 22 23 24 (2) the development and maintenance of knowl- edge about Soviet-bloc countries. depends upon the na- tional capability for advanced research by highly trained and experienced specialists, available for serv- ice in and out of Government; (3) certain essential, functions are necessary to ensure. the existence of that knowledge and the capa- bility to sustain it, including (A) graduate training, (B) advanced research; (C) public dissemination of research data, methods and findings; (D) contact and collaboration among Govern- ment and private specialists and the facilitation of research based on the extensive, .data . holdings of the United States Government; and (E). first-hand experience of Soviet-bloc coun- tries. by: , American specialists including on-site Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 2 4 conduct the functions described in this section on a na- 5 tional scale are the National Council for Soviet and 6 . ` East European Research, the Woodrow Wilson Inter- 7 national Center for Scholars, and the International Re- .8 search and Exchanges Board of the American Council 9 of Learned Societies; and 10-- (5) it is in the national interest for the Federal 11 Government to supplement the support for the func- 12 tions described in this section furnished by local, State, 13 ? regional, 'and private agencies, organizations, and indi= 14 viduals, and thereby, to stabilize the conduct of these 15. ' functions on ' a national scale, consistently, and on a 16 ' long range basis. 3 conduct of advanced training and research to the extent practicable; (4) three existing institutions already organized to DEFINITIONS SEC. 3. As used in this Act- (1) the term "Board" means the International Re- search and Exchanges Board organized in 1968 by the ? American Council of Learned Societies and the Social Science Research Council; (2) the. term "Center" means the Woodrow 24 . Wilson International Center for Scholars of the Smith- 25. sonian Institution; 17 18' 19 20 21 22 23 --: Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 4 1 (3) the term "Fund" means the Soviet-Bloc Re- 2 search and Training Fund established under section 4; 3 . (4) the term `.`institution of higher education" has 4 the same meaning given such term in section 1201(a) of the Higher Education Act of 1965; (5) the term "National Council" means the Na- tional Council for Soviet and East European Research, a not-for-profit corporation organized under the laws of 9 the District of Columbia in 1978; and 10 (6) the term "Secretary" means the Secretary of 11 . the Treasury. 12 ESTABLISHMENT OF THE SOVIET-BLOC RESEARCH AND 13 .TRA.ININO FUND 14 SEC. 4. There'. is established in the Treasury of the 15 United States. a trust fund to be known as the Soviet-Bloc 16 Research and Training Trust Fund. The Fund shall consist .17 of- 18 (1) amounts appropriated .to it by section 5; and .19 (2) interest. and proceeds credited to it under sec- 20- . tion (8)(c). 21 APPROPRIATIONS TO THE FUND 22 SEC. 5. There. are appropriated to the Fund, out of any 23 money in . the Treasury not otherwise appropriated, 24 $50,000,000. Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 . PAYMENTS FROM THE FUND; USES OF PAYMENTS 2 SEC. 6. (a) The interest on any obligations held in the 3 Fund shall be available, as provided in advance by. appropri- 4 ation Acts, for. payments to the National Council for use in 5 accordance with this section. 6 . (b)(1) One-quarter of the payments made in each fiscal 7 year shall be 'used by the National Council to--- 8 (A) 'develop and conduct a research agenda of a 9 national research program at the postdoctoral or equiv- 10. . alent level in ' the field of Soviet and East European 11 .. ,..studies to'-be designed in consultation with officials of 12 the Federal Government designated by the Secretary 13 of State;. 14 (B) disseminate information about the research 15 '. program described in clause (A) and solicit proposals 16 for research contracts from American institutions of 17 higher education and not-for-profit corporations, which 18 contracts. shall contain shared-cost provisions; and 19 . . . (C) award contracts for such research projects as 20 . the Board of Trustees of the Council determines will 21 best serve to carry out the purposes of this Act after 22 reviewing the proposals submitted under clause (B). 23 - (2) One part of the payments made in each fiscal year 24 shall be used by the National Council to- . V "_T Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 6 1 (A) establish and carry out a program of graduate, 2 postdoctoral, and teaching fellowships for advanced .3 training in Soviet studies and related studies conducted 4 (i) at American institutions of higher education and (ii), 5 on a shared-cost basis; 8 9 10 (B) disseminate information on the fellowship pro- gram described in clause (A) and solicit applications for fellowships from qualified institutions of higher educa- tion and qualified. individuals; (C) award such fellowships as the Board of Trust- 11 ees of the National Council determines will best serve 12 to carry out the purposes of this Act after reviewing 13 applications submitted under clause (B); and 14 (D) disseminate research, data, and. findings on 15 Soviet studies and related fields in such a manner and 16 to such extent as the Board of Trustees of the National 17 Council determines will best serve to carry out, the 18 purposes of this Act. 19 (3) One part of such payments made n each fiscal year* 20 to the National Council shall be used for payments to the 21 Center to- 22 (A) provide fellowship support and research facili- 23 . ties in Washington, District of Columbia, for American 24 specialists in the field of Soviet studies to conduct ad- Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 7 1 vanced research with particular emphasis upon the use 2 of data on Soviet-bloc countries: 3 and 4 (B) conduct seminars, conferences, and other simi- 5 lar workshops designed to facilitate research collabora- 6. tion between Government and private specialists in the 7 .. field of Soviet and East European studies. . 8 (4) One part of such payments made in each fiscal year 9. to the National Council shall be used for payments to the 10 - Board to conduct.specialized programs in advanced training 11 and research on a reciprocal basis in the Union of Soviet 12 Socialist Republics and other nations of Eastern Europe de- 13 signed to facilitate access for American specialists to research 14 'institutes, personnel, archives, documentation, and other re- 15 search and training resources located in the Union of. Soviet 16 Socialist Republics and such nations. 17 (c)(1) Payments under this Act shall be made. as soon 18.. after approval of the application as practicable. 19 (2) Payments under this. Act may be made in install- 20. ments, in advance or by way of reimbursement with neces- 21 sary - adjustments on account of overpayments and underpay- 22 ments. S2919Is Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 8 APPLICATIONS SEC. .7. (a) The National Council shall prepare and 3 submit an application to the Secretary once each fiscal year. 4 Each such application shall- .6. (1) provide a description of the purposes for which the payments will be used in accordance with section (6); and :.(2) provide such fiscal control and such accounting ..procedures as may be necessary (A) to insure a proper 10 Accounting . of Federal funds paid to the applicant under 11this Act, and (B) to insure the verification of the costs. 12 . of the continuing education program furnished by the 13 - applicant.. .. 14 (b) The Secretary shall expeditiously approve any appli-. 15 cation that meets the requirements of this section. 16 MANAGEMENT OF THE FUND 17 SEC. 8. (a) It shall be, the duty of the Secretary to invest 18 such portion of the Fund as is not, in his judgment, required 19 to meet current withdrawals. Such investments may be made 20 only in interest-bearing obligations of the United States or in 21 obligations guaranteed as to both principal and. interest by 22 the United States. For such purpose, such obligations may be 23 acquired (1) on original issue at the issue price, or (2) by .a 24 purchase of outstanding obligations at the market price. The 25 purposes for which obligations of the United States may be S29191S .. Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 9 1 issued under the Second Liberty Bond Act are extended to 2 authorize the issuance at par of special obligations exclusive- 3 ly to the Fund.. Such special obligations shall bear interest,at 4 a rate equal to the average rate of interest, computed as to 5 the. end of the calendar month next preceding the date of 6 such issue, borne by all marketable interest-bearing obliga- :7 tions of the United States . then forming a part of the public 8 debt; except that where such average rate is not a multiple of 9 one-eighth of 1 per centum, the rate of interest of such spe- 10 cial obligations shall be the multiple of one-eighth of 1 per 11 centum next lower than such average rate. Such. special obli- 12 gations shall be issued only if the Secretary determines that 13 the purchase of other interest-bearing obligations of the 14 United States, or of obligations guaranteed as to both princi- 15 pal and interest by the United States on original issue or at 16 the market price, is not in the public interest. 17 (b) Any obligation acquired by' the Fund (except special 18 obligations issued exclusively to the Fund) may be sold by the 19 Secretary at the market price, and such special obligations , .20 may be redeemed at par plus accrued interest. 21 (c) The interest on, and the proceeds from the sale or 22 redemption of, any obligations held in the Fund shall be cred- 23 ited to and form a part of the Fund. '. S 2919 IS Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 10 REPORT 2 SEC. 9. The National Council shall prepare and submit 3 to the President and the Congress at the end of each fiscal 4 year in which the National Council receives assistance under 5 this Act a report of the activities of the National Council, and 6 the activities of the Board and the Center, supported by as- 7 sistance under this Act, together with such recommendations 8 as the National council deems advisable. 0 Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 Approved For Release 2007/09/20: CIA-RDP84BOO148R000400810016-7 SOVIET-BLOC RESEARCH AND TRAINING FUND PROBLEM: The United States is running low on a element vital to its national security: expertise on the Soviet Bloc. While the USSR has invested massively in international studies, including closely targeted research on the U.S., we have done the exact opposite... Private and public funding..for foreign language and area studies, heavy in the 1960s, has dropped so low over the past decade that in. the key area of Soviet Bloc analysis we have fewer than two-thirds of the specialists we need. Although government agencies, with some exceptions, are not feeling:an acute, immediate shortage of qualified personnel, they and the broader academic world face the reality that junior scholars are not now entering the field in number sufficient to replace those who are retiring (especially in economics) or to expand-research into areas that have received insufficient attention (Soviet activities in'Africa and Europe,-Soviet conduct in the SALT negotiations, and Soviet minorities in Central Asia). The reservoir of academic expertise is drying up. Seeing a future of diminishing academic opportunities and shrinking funding from private and public sources, younger scholars are turning away from Soviet studies to more promising career fields. As a result, our national capability to analyze our principal adversary--a fundamental ingredient of Ameri- can strength--is in serious jeopardy. Once the capacity is dismantled, .it will take decades at very high cost to recreate. The urgent need is to provide a. stable foundation for Soviet studies, a base on.which scholars and institutions can rely and rebuild. PROPOSAL: To. meet this national security requirement, this bill would. establish an endowment of $50 million to create a Soviet-Bloc Research and Training Fund. The sum would be invested and reinvested in U.S Treasury debt instruments, the interest from which will be used to support a national program of.(l) advanced research for broad dissem- ination to the public and to government policy-makers and (2) the training of research specialists under university auspices in the U.S. as well as support for their studies in East European countries. and the. Soviet Union. The interest from the Fund would be made available to the existing National. Council for Soviet and East European Research, the-Woodrow Wilson Interna"ional?Center for Scholars, and the International Research and Exchanges Board (IREX) to finance the work of U.S. scholars in Washington-area research facilities and the programs of exchange which take American specialists into the Soviet Bloc. The Council itself would continue and expand its current support for a nationwide program of-advanced research on the USSR and Eastern Europe .at U.S. research institutions and fund specialized training on a shared cost basis. There would be an annual report to Congress on these activities. Approved For Release 2007/09/20: CIA-RDP84B00148R000400810016-7 ,