DONATION BY JOHN MCCONE TO EDUCATIONAL AID FUND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79M00467A000200090003-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 33
• Document Creation Date: December 12, 2016
• Document Release Date: November 5, 2001
• Sequence Number: 3
• Publication Date: November 24, 1976
• Content Type: NOTES

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The Deputy Director
Central Intelligence Agency
NOTE FOR: DDA
IG
24NOV1976
SUBJECT: Donation by John McCone to
Educational Aid Fund
I have reviewed your papers
to me on John McCone's proposed
donation to the Educational Aid
Fund. I can see no.reason to
object to his generosity.
I think you will find
interesting the attached opinion
of the General Counsel's office
on this subject.
%s/ L. H. KnooR
E. H. Knoche
Attachment:
OGC Opinion
Orig: (23 Nov) STATINTL.
istri ution:
DDCI w/att
-DDA w/att
IG Watt
R Watt I STATINTL
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22 November 1976
NOTE FOR: Mr. Knoche
SUBJECT: Donation by John McCone to Educational
Aid Fund
1. The attached note from the DDA recommends
that Mr. McCone's donation be accepted and includes
some background material on previous advise given
by Colby on the subject of donations (Tab A).
The DDA sent his note and the background to the
IG for comment.
2. The IG recommends against accepting the
donation (Tab B). He argues that there would be
an appearance of impropriety for the Agency to
receive funds from someone with a relationship to
ITT.
3. I referred the matter to the General Counsel.
Attached at Tab C is an opinion from the General
Counsel's office which states that
acceptance of the propose onation would not be
prohibited by conflict of interest statutes,
E. 0. 11222, or any Agency regulations implementing
them. I do not think Mr. Colby's directive to the
i'lL\ (Tab D) applies and I recommend you interpose
no objection to the donation. One-of the points of
the OGC memorandum is that EAF is not a government
1'nt.ity, and hence I think there is some question
to the Agency's authority to object to the
alt"'tion. In any event, Paragraph 11 of the OGC
;,:'.-'?randum astutely points out that McCone's former
ia,terest in and efforts on behalf of EAF in fact
against any actual impropriety.
slt
t: c'd
Assistant to the Deputy Director
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STATINTL
 ROUTING AND RECORD SHEET
FORM
3-62
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OFFICER'S I COMMENTS (Number each comment to show from whom
INITIALS to whom. Draw a tine across. column after each comment.)
-RDP79r 00467A000200090003-8
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MEMORANDUM FOR: Deputy Director of Central Intelligence
FROM : John H. Waller
Inspector General
SUBJECT : McCone Offer
1. I am afraid that I have to recommend against accepting
Mr. McCone's offer. His is a generous gesture and I would
want to avoid offending him, but present circumstances seems
to me to inhibit us.
2. You will note that the August 1974 IG paper dwelt on
soliciting gifts for EAF;.Mr. Colby's instructions barred the
receiving of funds, as well, from individuals doing business
with the Agency.
3. Mr. McCone has two relationships with the Agency.
One of these is his genuine personal identification with ity dating
from his days as Director; the other is peripheral to his role
as Director of ITT. It is in the context of the second relation-
ship that the present question takes on special significance.
I need not emphasize the sensitivity currently attaching to the
ITT relationship. It should be kept in mind that the reported
reason for Mr. Nedzi's attitude on relationships of former
CIA employees with the Agency is a reflection of the reser-
vations he has about the continued ties between Mr. McCone
and CIA.
4. I don't disagree with the general reasoning in Jack
Blake's memorandum. In the present instance, however, I
feel that it is better to decline Mr. McCone's generous gesture.
If you agree with me some one should speak with Mr. a McCone
personally to minimize the unpleasant connotations that the
decision might signify to him.
(sign68)
John H. Waller
John H. Waller
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DDA 76-S
Executive Re.~i_try
MEMORANDUM FOR: Deputy Director of Central Intelligence
FROM . John F. Blake
Deputy Director for Administration
THROUGH Inspector General
1. I refer to the matter raised at the 28 October
1976 Morning Meeting concerning the desire of John McCone
to present'his fee'earned in connection with an article
to the Educational Aid Fund. The matter of accepting
contributions to the Educational Aid Fund was subject to
examination in August 1974. I have attached for your
general background in this matter a memorandum addressed
to the DCI by the Inspector General on the issue and,
additionally, on a routing and record sheet of 19 August
1974, Mr. Colby's directive to me.
2. This is obviously a somewhat delicate matter but,
upon my review again of the background material, I would
suggest we accept Mr. McCone's offer. He is a "retiree,
etc." and the funds realized are as a result of his
private endeavors.
3. So that you may have additional advice on this
matter I am forwarding this memorandum to you through
the Inspector General and have asked him to comment on
the matter from his point of view.
!:S/ Jahn F. a'' ke
John F. Blake
Distribution:
Orig - DDCI w/atts
1 - IG w/atts
1 - ER w/atts
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-3 ENDER WILL CHECK CLASSIFICATION TOP AND BOTTOM
UNCLASSIFIED CONFIDENTIAL ECRU
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' OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
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ACTION!
DIRECT REPLY
PREPARE REPLY.
APPROVAL
DISPATCH
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CONCURRENCE
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SIGNATURE
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FOLD HERE TO RETURN TO SENDER
FROM: NAME. ADDRESS AND P DATE
UNCLASSIFIED CON SECRET
Follal a0. 237 Use previous editions
1-67
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25X1A
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JOHN ALEX MS CONE
612 SOUTH FLOWER STREET
LOS ANGELES 90017
October 20, 1976
Mrs. Ethel A. Crockford
Production Editor
General Publications
The H.W. Wilson Company
950 University Avenue
Bronx, New York 10452
Dear Mrs. Crockford:
In response to your letter of October 4th
requesting my permission to reprint the article
appearing in TV Guide, January 10, 1976, this
letter will serve as your authorization to do so.
My delay in responding was created by the
fact I felt it adviseable to check with the publication
prior to granting my permission. You may be
interested in their response of which I attach a copy.
With respect to the fee for this reprint,
please forward the fee to the Educational Aid Fund,
Post Office Box 1490, Main Post Office, Washington, D. C.
20013. This fund is used expressly for the education
of, children of employees of the Central Intelligence Agency.
Also, thank you for your offer to forward to me
a copy of your publication. I shall look forward to re-
ceiving it.
Yours most sincerely,
Enclosure
bb
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 NOV Now
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TV GUIDE
MERRILL PANITT
EDITORIAL DIRECTOR
Miss Betty Bothe
Secretary to John A. McCone
612 South Flower Street
Los Angeles, California 90017
Dear Miss Bothe:
October 13, 1976
Thank you for your letter of October S.
Our librarian assures me that The H. W. Wilson
Company is a well-known, reputable publisher dealing pri-
marily in reference books. For one, they publish the
Readers' Guide to Periodical Literature, which is the bible
for librarians and researchers, as it indexes the major
magazines. (Our only bone to pick with them is that they
do not index TV GUIDE!) I've enclosed literature about
The Reference Shelf, as well as Readers' Guide, to give
you some background about the company.
1. hope this assists Mr. McCone in making a decision.
Encls.
Sincerely,
Suzanne E. Patrick (Mrs.)
Secretary to Merrill Panitt
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ROUTING AND
[] CON, ATIAL [] SECRET
OIG 1 6565
TO: (O.Ricer designation. room number, and
building)
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OFFICER'S
INITIALS
F,1 INTERNAL. [-1CLASSIFIED
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MEMORANDUM FOR: Director of Central Intelligence
SUBJECT : Solicitation of Corporate Contributions for
the CIA Educational Aid Fund
1. Per your request, we have investigated current and past
Agency practices with respect to the solicitation of contributions
from corporations and outside individuals for the Educational Aid
Fund (EAF). Historically, a 15 April 1964 memorandum from the
Office of the General Counsel contained the statement that 'pit would
be proper for the EAF to solicit donations from persons and incor-
porations with whom the Agency is doing business. 1' However, the
memorandum went on to caution against overzealousness in the
sense that prospective contributors should not be left with the
impression that they could expect any special considerations or
benefits as a result of their donations. The newly constituted EAR`
Board of Trustees held its first meeting on 21 April 1964 and
accepted the proposal that contributions to the EAF may be solicited
from outside the Agency. The Board of Trustees agreed to compile
a list of Agency and OSS alumni who were considered to be good
prospects and to approach them for donations. Although the list
was compiled and the subject was enthusiastically discussed at a
number of subsequent meetings, it appears from, the records that
nothing of any substance or significance developed until. Mr. John
Bross, Chairman of the EAF Board of Trustees, met with Mr. John
A. McCone in the latter part of 1970.
2. On 16 November 1970, Mr. McCone agreed to give
$50, 000 to the EAF over a period of 10 years and to undertake a
fund-raising campaign in New York in February 1971 among alumni
and others interested in intelligence activities. The latter included
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 Approved For, Rel(bhse -2-064% 14'/20 : Cji`-'f d1 79 11''0467R000200090003-8
SUBJECT: Solicitation of Corporate Contributions for the CIA
Educational Aid Fund
business friends and associates of Mr. McCone who were affiliated
with some of the largest corporations in the United States. The
highlight of the campaign was a dinner hosted by Mr. McCone at
the Links Club in New York on 10 February 1971 and attended by
about half of those invited. The principal speaker at the dinner
was Mr. Richard Helms, then the DCI. As a result of the dinner,
a number of substantial contributions were made to the EAF as
can be seen from Attachment A, which includes lists of outside
contributors from 1971 to the present. Since that time there have
been no other fund-raising events. However, throughout 1972,
Mr. Lawrence Houston, who succeeded Mr. Bross as Chairman,
wrote a number of letters of solicitation to previous contributors.
Active outside solicitation seems to have subsided by 1973, since
contributions to the fund for the past two years have come mainly
from Agency employees and former colleagues such as Mr. McCone
and Mr. and Mrs. J. Ramsay Hunt.
3. In our investigation, we could find no one other than
Messrs. McCone, Bross, and Houston who solicited donations for
the EAF from corporations,or individuals outside the Agency. It
is inconceivable that any of these three gentlemen could have thought
in terms of personal profit in soliciting these. donations. Further,
we found no evidence to suggest that the Agency consciously bestowed
benefits on those who contributed as opposed to those who did not.
Although ITT contributed $5, 000 to the EAF in 1971 and has received
briefings by the Agency on a number of occasions over the years, the
briefings were related to its work as an Agency contractor and there
is no indication that these briefings were occasioned by its contri-
bution. The same situation obtains with respect to the other corpo-
rations that contributed to the EAF.
4. As Attachment B, I have included a copy of a personal
letter from Mr. McCone to a few of his wealthy business friends.
I would call your attention to the penultimate paragraph which could
provide considerable nourishment to those who have misgivings
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1 S.
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SUBJECT: Solicitation of Corporate Contributions for the CIA
Educational Aid Fund
about the Agency. Although the tone of the paragraph is perhaps
regrettable, there is again no record of any individual or corporation
a contribution
ki
ng
receiving any special treatment as a result of ma
to the EAF.
5. Section 201 of Executive Order 112ZZ (8 May 1965) states
that, unless otherwise authorized by regulation, no employee shall
solicit any gift from any person, corporation or group which has or
is seeking to obtain a contractual or other business or financial
with his agency. It would appear, therefore, that the
nshi
ti
l
p
o
a
re
Agency was remiss in undertaking its external fund-raising campaign
for the EAF. I am persuaded, however, that there was no mis-
conduct on the part of any Agency employee in this activity, either
from the standpoint of personal gain or of providing special benefits
to contributors. Nevertheless, given today's climate, I would suggest
that you report this past activity to our oversight committees.
Attachments
As Stated
~.. ~. bitilj'
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5, 000.00
ITT . . . . . . . . . . . . . . . . ... . . . . . . 5,000.00
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NOTE FOR THE FILE
SUBJECT: Educational Aid Fund
23 May 1974
1. This is to amplify the record of telephone conversation
with Don Chamberlain.
2. We are not to solicit funds for EAF from any organization
who is contracting with CIA. We are to be especially careful in
STATINTL our solicitation of funds with industry generally. I ' pointed out
to Chamberlain that we are not now soliciting funds at all and
that we are only regularly getting money from Mr. McCon.e and from.
Dr. Chamberlain and I agreed that if for some reason,
we shout get another contribution from ITT, or similar in-
stitutions, I will be in touch with him before endorsing. the
check.
Deputy Director o ersonnel
STATINTL
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21 May 1974
Telephone call from, Dr. Chamberlain to
(in Mr. Janney's absence) :
STATINTL
Chamberlain: You sent Scott all this material on E AF'.
I went over this with the Director this morning. All I. got
out of it is not to collect any more donations from an
active contractor.
STATINTL Now we won't actively solicit. But if
something comes in, what do I do with it?
Chamberlain: Is something apt to come in?
STATINTL Nothing more than from Mr. McCone, ^
Chamberlain: That's OK.
STATINTL
STATINTL
STATINTL
STATINTL
any more.
STATINTL
ITT were in direct. response.
to the appea . We have` not had anything since then anti: don't
expect anything.
Chamberlain: I said I would tell Fred not to go after
Personally, I didn't think it was a good idea
.in the first place, but better minds than mine made that. decisiozn..
You probably saw the exchange . Ile said he didn't think they
ought to be doing it. . . . I will put this in the record. arc?
tell Fred} and if we get a check we will let you know.
Fine.
In the last couple of years we have had. nothing..
Once R"3-erect response to the McCone appeal subsided, the
contributions have been from people and real friends like the
not the contractors.
bkf
Chamberlain: Fine, I will send your files back.
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Chamberlain:
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-~-re
2 0 iV~:.i,j r '
MEMORANDUM FOR: Deputy Inspector General
Scott:
I have looked through our EAF files
concerning contributions by ITT."
By way of background, an effort began in.
1970, when John Bross was chairman of EAF, to embark on
and organize a fund raising compaign. John McCone agreed
to host a dinner meeting, which eventually took place on
10 February 1970-at the Links Club in New York City. A.
list of possible attendees was prepared and a list of
those who actually showed up is attached. In addition.,
Mr. McCone, Mr. Helms, Larry Houston., John Bross, and
attended. I am also attaching a list
of people who received invitations. .
Quite separately,. the file shows that
Mr. McCone initiated correspondence to others. We dontt
have all such correspondence, but I did find a copy of.
the letter he sent to,
There are, of course, copies of
correspondence between Mr. Geneen and Mr. Ned Gerrity of
ITT You will also see
attached a breakdown of contributions received during 1971
and since which we specifically relate to Mr. McCone's
fund raising dinner meeting.
I am also taking the liberty of sending
you our entire file so that you can go through the material
yourself to' be sure we have not overioo.ed anything of
significance.
Attachments
STATINTL
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JOHN ALEX MCCONE
612 SOUTH FLOWER STREET
LOS ANGELES 90017
October 20, 1976
Mrs. Ethel A. Crockford
Production Editor
General Publications
The H. W. Wilson Company
950 University Avenue
Bronx, New York 10452
Dear Mrs. Crockford:
In response to your letter of October 4th
requesting my permission to reprint the article
appearing in TV Guide, January 10, 1976, this
letter will serve as your authorization to do so.
My delay in responding was created by the
fact I felt it adviseable to check with the publication
prior to granting my permission. You may be
interested in their response of which I attach a copy.
With respect to the fee for this reprint,
please forward the fee to the Educational Aid Fund,
Post Office Box 1490, Main Post Office, Washington, D.C.
20013. This fund is used expressly for the education
of. children of employees of the Central Intelligence Agency.
Also, thank you for your offer to forward to me
a copy of your publication. 1 shall look forward to re-
ceiving it.
Yours most sincerely,
Enclosure
bb
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 "Apprcved For Reuse 2001/11/20: CIA-RDP79M00467A200090003-8
MERRILL PANITT
EDITORIAL DIRECTOR
Miss Betty Bothe
Secretary to John A. McCone
612 South Flower Street
Los Angeles, California 90017
Dear Miss Bothe:
October 13, 1976
Thank you for your letter of October 8.
Our librarian assures me that The H. W. Wilson
Company is a well-known, reputable publisher dealing pri-
marily in reference books. For one, they publish the
Readers' Guide to Periodical Literature, which is the bible
for librarians and researchers, as it indexes the major
magazines. (Our only bone to pick with them is that they.
do not index TV GUIDE!) I've enclosed literature about
The Reference Shelf, as well as Readers' Guide, to give
you some background about the company.
I. hope this assists Mr.. McCone in making a decision.
Sincerely,
C. 1-17
ell
Suzanne E. Patrick (Mrs.)
Secretary to Merrill Panitt'
Encls.
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