ROUTING AND RECORD SHEET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000400080007-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 26
• Document Creation Date: December 12, 2016
• Document Release Date: March 26, 2001
• Sequence Number: 7
• Publication Date: October 21, 1976
• Content Type: FORM

"Director 'of Personnel 2, OC
SE 58,.Headquarters
OCT 197
IINCLA:g5IFIED
TO: (Officer designation, room number, and
FORM
3-62
p CONFIDENTIAL fl SECRET
21OCT196
DD/A RRegistrY
to~wham. prom a lino ac ass column after each comment.)
At Tab A is "a requirement ST
from Office of General
se :c, 1e.-information. on ..
At Tabs ,,B and. C is material.
extracted from our Educational
.Aid Fund files. This material
includes references to Messrs.:
connection
with an FAF un ra7.sincr drive
CTATIfVTI
At Tab B is the material which
actually includes the names of
these indi.vidual.s.#e:have de.)et
references to the names of other
individuals or organizations .
I invite your attention to-`
Tab c.this i.s~ a ref ort: from. the
Inspector Generalto' the Director
concerning the IG"s investigation
of the solicitation of? corporate
contributions for the C:IATs
Educational Aid. Fund. The IG memo
d an attachment do not include
could lead to the conclusion not
to release the material. In STA
conversations with
however, he thought that we should
fozward this material. to OGC where.
a decision could be made on whethei
the tabbed material. should or
should not be released.
(OVER)
Amam/Pd Enr Fjplc2Se 7I)Qa n i -
61 0 u5,EDI REVIOUSTINS[] SECRET ^ CONFIDENTIAL E] USE ONLY CLASSIFIED
INTL
INTL
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For this reason, I am forwarding
the material but urge the DDA, and
especially the Inspector General,
who authored this report, to make
the decision involved. Within Tab
C is a report of telephone conversa-
tion between the IG and me. I do
not believe this falls within the
-requirement and would urge it be
struck on the basis of being an
internal conversation, but again,
I defer to you for this decision.
When making a decision that Tab C
be forwarded,I invite your attention
to paragraph 4 of the IG memo and
Attachment B to that memo.
.STATINTL
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For this reason, I am forwarding
the material but urge the DDA, and
especially the Inspector General,
who authored this report, to make
the decision involved. Within Tab
C is a report of telephone conversa-
tion between. the IG and me. I do
not believe this falls within the
requirement and would urge it be
struck on the basis of being an
internal conversation, but again,
I defer to you for this decision.
When making a decision that Tab C
be forwarded, I invite your attention
to paragraph 4 of the IG memo and
Attachment B to that memo.
Distribution:
Orig - OGC
1
- DDA
1
-
IG
1
--
D/Pers
1
-
DD/Pers Chrono
1
- DD/Pers/SP-PAB/EAF Files
DD/Pers:-:bkf (21 Oct 76)
STATINTL
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TAB B
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The attached letter was sent to the following contributors to
EAF who did not attend Mr. McCone's dinner:
Note: Mr, McCone will write directly to the following contributors:
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A July 1971
I know from your interest in and contribution to our
Educational Aid Fund that you are familiar with the pur-
poses of the Fund and the importance the Agency places on
its function as part of its over--all. personnel rnanacgement.
As a result of our drive for employee contributions,
Mr. McCone's effective assistance, and other miscellaneous
sources of income, this year the Fund had $27,220 to apply
to scholastic grants. One hundred and eleven applications L,'`--
were received and were reviewed individually by the Fund's
Selection Committee. .They were then rated by the Selection
Committee based on need, the Students willingness and
ability to supplement through his own efforts, the student's
performance, and the student's ability and motivation as
demonstrated by an essay in each case. The one exception
to this process is the Wisner Scholar, which award is
based on merit alone.
"Fifty--three grants were approved, ranging from $300 to
$700, with the majority at the $500 level (the lowest ones
were based on the applicant- 's statement 'Chat t i.s; S':ould
meeL. his needs) Ten alternates were also approved in the
event the principal awardees were not accepted by the
schools or colleges of their choice. The caliber of the
applicants was satisfactorily high, and the need in most
cases was only too apparent. Information on a few award
winners is presented in the enclosure.
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z e It is o vzous a case gran s are ighly prized
by the aw,rardees, it is also clear that in many cases a higher
amount would be justified. The number of applicants has been
increasing year by year, and it is certain next year to exceed
what I have outlined above. We plan an even more vigorous
drive for funds from employees of the Agency, and we will
need all the outside assistance we can possibly get. I hope
you will keep this in mind in planning your contributions
for the coming year.
Sincerely,
STATINTL
Lawrence R. Houston
General Counsel
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PROFILES OF TYPICAL AWARDEES
It may be helpful at this point to provide some information on a few of the
award winners, with a view to describing for you the types of young people who
are being assisted by the Educational Aid Fund. Each case will illustrate a
particular criterion taken into consideration when. recipients of the grants are
chosen: self-help, financial need, and achievement.
The recipient of the Matthew Baird Award is a typical example of a student
who has demonstrated the ability to help himself financially, in order to further
his education and to assist his family since the death of his father last year. The
son of an Agency employee living in Washington, D. C., he worked as a tennis
instructor for the D. C. Public School System in the summer of 1970. During
the past school year he has been employed after school at the Marriott Junior Hot
Shoppes, working from 5:00 to 11:00 p. m. and. returning home by bus at 1:00 a. m. ;
on weekends he does odd jobs. His younger brother is deaf, which must have had
some influence in determining his career goal, which is to pursue a college course
in Special Education in order to work eventually with blind and deaf children. His
extracurricular activities have included leadership roles in the CYO and in his
parish youth clubs, advising and counseling of boy scouts, and sports. Represent-
atives of his church and school have commended him for his dedication to others,
leadership ability, and diligence in studies.
The John A. McCone Award winner is a girl. The awarding of a grant to
this daughter of an employee, who supports seven dependents on an annual salary
of less than $8, 000, appropriately illustrates the financial need consideration.
Her class standing is first in a class of 140; she has received scholastic awards
and the DAR Good Citizenship Award, in addition to having participated in various
extracurricular activities. This young lady is motivated. by a desire to help others
with their social problems and, to this end, she hopes to pursue her education in
the field of social work and elementary education.
Outstanding scholastic achievement as a criterion for selection of awardees
is well exemplified by another winner. The son of an employee whose deceased
husband was also an Agency employee, he is completing his Sophomore year at
Yale University. In his two years there he has received all "Honors" and "High
Pass" grades; he ranked first in his graduating class of 760 at Wakefield High
School, and received exceptionally high scores in the College Entrance Examina-
tions. In addition to his studies, he is engaged in volunteer teaching of New Haven
inner-city high school students. His goal is to become a university professor of
chemistry; therefore, he intends to work for his Doctorate after graduating from
Yale. His college counselor cites his maturity in selecting his courses and
working at them, and commends him for his sense of social responsibility.
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While it is obvious that these grants are highly prized
by the awardees, it is also clear that in many cases a higher
amount would be justified. The number of applicants has been
increasing year by year, and it is certain next year to exceed
what I have outlined above. We plan an even more vigorous
drive for funds from employees of the Agency, and we will
need all the outside assistance we can possibly get. I hope
you will keep this in mind in planning your contributions,
for the coming year.
Sincerely,
Lawrence R. Houston
General Counsel
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R
A
Dear Mr.
I know from your interest in and contribution to the
Educational Aid Fund that you are familiar with the purposes
of the Fund and the importance I place on it.
This year the Fund received 111 applications, of which
63 were found to be qualifying under the stiff restrictions applied
by the Fund, Awards were made to 53 individuals, running
from $300 to $700, totaling $27, 220. The remaining 10 are
alternates. While it is, obvious that these grants are highly
prized by the awardees, it is also clear that in many cases a
higher amount would be justified, but these awards were all the
Fund was equipped to provide. The number of applicants has
?
been increasing year by year, a,--d it t is certain re~:t year to
exceed what I have outlined above.
The Educational Aid Fund needs all the assistance it can
possibly get, and I hope you will keep it in mind in planning your
contributions for the coming year.
Sincerely,
John A. Mc Cone
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 1971
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'33, iOD.O3 ?
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 UN LASSIFIED %,_, ONLY ^ CONK NTIAL
^ SECRET
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SUBIEC., (Optional) 5~
/
sanrg.,aa_
.
FROM:
EXTENSION
NO. J
C-IG
6565
DATE
19 August 1974
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
INITIALS
to whom. Draw a line across column after each comment.)
RECEIVED
FORWARDED
DCI
4.
7.
9.
10.
12.
13.
owl
15.
STATI NT
FORM USE PREVIOUS INTERNAL
3.62 610 EDITIONS "S SECRET ^ CONFIDENTIAL USE ONLY ^ UNCLASSIFIED
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a 1974
- -.7
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 "it would
be proper for the EAF to solicit donations from persons and incor-
porations with whom the Agency is doing business. T' 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 EAF
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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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
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.
STATINTL Although ontributed $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
i1i
h9
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 r. .?r ~, . i-r i~. ~ bra ~.~ ~~t- ri-_`r`; wJ,r~ .' }
1i HitiS+S ~. it i, U i.:
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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
receiving any special treatment as a result of making a contribution
to the EAF.
5. Section 201 of Executive Order 11222 (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
relationship with his agency. It would appear, therefore, that the
Agency was remiss in undertaking its external fund-raising campaign
for the E.A.F. 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.
Donald F. Chamberlain
Inspector General
Attachments
As Stated
4~rtti,?ZVIp_xi','
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