PRESS REACTION TO SENATOR CASE'S RADIO FREE EUROPE INITIATIVE

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CIA-RDP72-00337R000500280004-0
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February 25, 1971
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Approved For Release 2005/08/22 : CIA-RDP72-00337R000500280004-0 u,'uai y '; , 1/i'1 ought to sue for peace. In fact, if the S.lth Vietnamese reverses continue, r a- noi may well end up believing they ore uch closed to a military victory than they themselves had thought. In any case, nothing about this operation would ..aei:: to serve the cause of a negotiated sc slo;.lent and dual peace. y we 'ould now he on a very r c a counsLa. We should not be c;- -r, ..but trying to find w ,S to u:.e.,cafatc it. We should not be to kii.; which seen: to as- .;urc our fultllcr and deeper entanglc- ~t. Wa should, instead, be deciding on G. to oil tdach to end our involvement. should not be seeking a military solu- .ca to souther.. Laos; we should be seek- jo'c:cal solution in Paris to end the ,. a .i? Vietnam. r". OIT O vT 0-2 RULES BY COM11/1iT- Ci LABOR AND PUBLIC Mr. President, at its -V111 or;; tnizatioral meeting on February 18, 1G71, the Committee or. Labor and Public eifare readopted its existing rules gov- g the committee's procedures. sc.. a copy of the colilmittee's rues to the desk and ask unanimous consent ;ghat they uc printed i s the Racoco as re- gni.ad by seeiion 13313 of the Legislative Reorganization Act of 1946, as amended. The cornmittae will meet again shortly to consider amendments to these rules ___ any amendments than adopted will also be subr;.it ed for p; blication in the There b:ing no objection, the rules wei e ordered to be printed in the RECORD, follows: Tim-as AND PROCEDURES OF TIE; SENATE CO:%I:.iITTr.E ON LABOR AND PUBLIC WELFARE Rule 1. Unless the Senate is meeting at t;. - time, or it is otherwise ordered, and o ice given, the Committee shall meet regu- .ra,ly at 10:30 a.m. on the second and fourth Thursday of each month. The Chairman may, upon proper notice, call such additional meetings as he may deem necessary, f.uic 2. The Chairman of the Committee (subcommittee), or if the Chairman Is not prescut, the ranking Majority member pres- cat shall preside at all meetings. Rule 3. All hearings conducted by the Com- mittco (subcommittee) shall be open to the public except: 1. Executive sessions for the consideration of bills or resolutions, or 2. gor voting, or 3. Where the Committee (subcommittee) by majority vote of those present orders an Executive session. Rule 4. For the purpose of conducting an Executive session, a majority of the Commit- tee (subcommittee) actually present shall constitute a quorum. No measure or recom- mendation shall be reported from the Com- mittee (subcommittee) unless a quorum of the Committee (subcommittee) is actually present at the time such action is taken. Votes by proxy shall be permitted. Rule 5. For the purpose of conducting pub- lic hearings (including the taking of sworn testimony) a quorum shall be determined as follows: (a) For the full Committee-five members actually present. (b) For seven-member subcommittee- three members actually present. (c)' For five-member subcommittee-two members actually present. Rule S. Thee shall . cc: ;fete record of all Con..uwc tion. Such r, e rae _.... co: voce cast by cwcli raenibc ? c '.ice Coinr. u(saC- conun.ttm) on .a y cuesn:o.. v%hten a "yea and nay, vote is deal z: cd. Clc of Con.:n. ce, or _ istant, .hall acmV a lee ,i..n :eereary of all prod c : l i bolo:e .hc con]mi stce) . Rule 7. he C naiv (s lice .:1:~.cc) ~._..w U.e e( t:'a wn- sha _ so fai: _:1 n e- n e.1t; of thei. ~,,o ec nitir:oa '-call s,vcaty-~WJ .re... s ore ._._ , ~c to b_-, soli - nlaries of tl: is ..n:ei2 is. The sic in o::ieci,~ ...ny he.. is .c t grized to i:mit this tone of Baca \,- aess _7Carin b loo , time Ceann t c 1N o.ln: t } The Cc.aini.. ibco, .::_,a e) as fart hra .ia .al . i_za ..,.,....:guy pray.: ly taken Oil -..mS .arc: :T.easiire5 s:,mar"Lo those before It for consderation. Rule S. Should :, s :bco.nnittee fade to re- port back so she foil Col:.lnittee on ally meas- ure a reasonable time, the C_.airmaih n-lay Niaihd:?aw the measure front st.b- cormnitta nd repo. tiler f to the Cgmrr:~ ec for r disposing::. Rule 9. No sal coanlriltce ..ay a rneeti_ig or hca.ing .L a tune tcd for a hearing or of tine full Ccnni._*"00. Rule 10. It shall be the city of she Chair- man to report or came to be i ;.o tad to the Senate, any iheasute or reco.::rn d: fell n - proved by the Contra ittee and to c-d O or Cause to be tai:en, necessary steps to i;ring the nat- ter to a vote. Rule 11. No pcrschh other than r.:efa'aers of the Committee (subco`a; nittco) and :~eL.bers of the staff' of the Com.nittee, ll: it be er- mitted to attend the Executive sic:ls g_ the Committee (sub eomrlittce), except by special dispensation of the Ccrrrr:ittec (at. - conimittee), or the Chairman Rule 12. The Chairman of the Co..:..,ittee (subcommittee) shall be empowered to ad- journ any meeting of the Committee (sub- committee) if a quorum is not present, with- in fifteen minutes of the time scheduled for such meeting. Rule 13. Whenever a bill or joint resolu- tion repealing or amending any statute or part thereof shall be before the Committee (subcommittee) for final consideration, the Clerk shall place before each member of the Committee (subconanittee) a print of the statute or the part or sectionl thereof to be amended or repealed showing by stricken- through type, the part or parts to be omitted, and In italics, the matter proposed to be added. Rule 14. Investigation Procedures a. An investigating coninlittee (subeon.- mittee) may be authorized only by the action of a majority of the committee. b. No investigating committee (subcom- mittee) Is authorized to hold a he .ring to hear subpoenaed witnesses or take sworn testimony unless a majority of the Members of the committee or subcommittee are pres- ent: Provided, however, that the committee may authorize the presence of a Majority and a Minority Member to constitute a quorum. e? An investigating committee (subcom- mittee) may not delegate its authority to issue subpoenas except by a vote of the committee (subcommittee), d, No hearing shall be initiated anless the investigating committee (subcominitee) has specifically authorized such hearing. e. No hearing of an investigating commit- tee (subcommittee) shall be scheduled out- side of the District of Columbia except by the majority vote of the committee (sub- committee). f. No confidential testimony taken or con- fidential material presented in an executive of az.:. vast ._t_ Cc 0 ~ic ..?u. gifts from corporations and rr: tee-e than '30 million each e s t ,, cones from t' le CIA, 'o t Case's c'larges, a CIA spokes- kit -,..d: -i- Central Intelligence Agency never re- or,, v,at,ians U.S. officials is- L i !,Ile Anuo'ican.n consulate general in ski^!t, Germans', maintain extremely close wills them. _esst one of these oficials, according o ]le sources, maintains a full-time liaison o the two stations with a, mission of their L'ogrnm content does i'er =sort ".S, policy. 'seep the stations informed, the sources , a?:son man passes on a steady of classified and unclassified U.S. '~;c,, ^?.c,rncn i. documents reporting on events `ncilities for keeping the classified RCI 1.c!'-olSs Katsell- seere' n of. state, recom- 0-1 '1011T7--on ordered the oV al- federal Act, ..,... ... `C -ES TURDpr ek c Et rope and ;'lc .;i, seve7 sl ;x b_ __ spc_it from cas-?*Cd, C.. 'TA Spend'ng for n e over tTO C act 1'; r no t Col less fo, own In e'tiry satisfies him that the charges are true. Between 312 mi4lon and $20 million in free advertising space is donated annually to raise private contributions for the sta- tions, Case said, but the return from the public s "apparently less than 5100,000." Case's proposal would amend the U.S. In- forlration and Educational Exchange Act to nutitorlse `'u'ds for bolls stations in the cookim, :isc!tl year and provide that no other federal money could be diverted to either station. A spokesman for Case said the New Jersey Republican hopes the legislation, if success- ful. will begin to lift the curtain on various federal secret spending, much of which, he feels, is no longer warranted. Emergency funding of Radio Free Europe and Radio Liberty from secret accounts might be understandable In an emergency or for a Year or two, Case said, But the Justi- fication his lessened as international ten- sions ?'.ave eased, he said. IF rota the Trenton Sunday Times, Jan. 24, 19711 CASS WOVL3 MALT CIA RADIO FUNDING- WASSIISrGTON.-If you thought that Radio Free 7urope depended on private contribu- tions so',c led 'trough its extensive tele- vision sd campaigns, you may be surprised to knot; that it is funded largely by the federal, government's Central Intelli once Agency (CIA), So said Sen. Clifford P. Case anno".acing plans to introduce Monday legis- lation that would for the first time put fed- eral funding of RFE and Radio Liberty under the control of Congress. The New jersey senator said that the two radio stations, which claim to be non-gov- ernme'ttal organiz:a.t-.ions sponsored by pri- vate contributions, receive about $20 million per year front Secret CIA budgets over which Congress leas no control. arm SPACE DONATED CIA funding allegedly accounts for near- ly al, - of the 1i34 million operating costs of the ^;o stations, with the remainder com- g fro:: cor?o:'ate contributions and citi- 7elt Llnnat ens. Toter the auspices of the Advertising Couoe'. l , Case said, about $12-20 million in free ^.d sin ce is . donated to -TIFF and RL by television and radio stations, nev:spapers ancl ^.z;.:?es, and billboard companies. The '~no-='- 51-O0,C20 in c 'tizen donctions that rest::;: from this c anapa.ign, ho;rever, are ?. '?r.,.,;._ ''e portion of the 1-111_- ^.c'. RL i-,-'~clio " rove and Radio Liberty were h ^~3 a_ .^5:. res_ ee tvei^ REd -- _.S t: C :e'_ioei os?^~;: "o.C.,c. 'Ti?_,- aa a_ ^u :.n_. , vO'ule 1=11 bread ca" to do"let union. a?, aogr ?nr in^ ed'toria_' P s o~` n-'N' those of the. Voice o'?z- ( (^C' Sunday Star, J tat C,ls^ To Coven oN CIA RADIO A:D Cr' O" _ rail' present to zorro77 o cntiz i . he ciaams _i'._on dell:.. .asidies g.'el: aro , .- m by pri- v'tte to CO 1...:Y - Tti"n". n" o , n"n issr?cd, yes;tcrday, Case e_ e ' re tr alo`7e the C.'_:1 "o v". 00 t ion" to Radio Free nne, 'lp cc direct govern- na nntP.i-aCtoh r..s_un..n._o_ st ed'y are non- stations, Both , c','eral hzmdred million dollars in United States Government funds have been expended from secret CIA budgets to pay almost totally for the costs of these two radio stations broadcasting to Eastern Europe," Case charged. SUBSTITUTE FUNDING SOUGHT Case, a member of both the Senate For- eign Relations and Appropriations commit- tees, said he will present legislation to bring the two stations under the aiithorizal,lnn and appropriation process of Congress, Ito will call tentatively for a $30 million authoris- ation, he said, tuider the amended U.S. In- formation and Educational Exchange Act of 1948. Rep. Ogden R. Reid, R-N,Y., will introduce similar legislation in the House, Case said. In developing his case, Case said that in- come tax returns showed that the combined operating costs of the two stations in 'fiscal 1969 were nearly $34 million ($21,109,935 for Radio Free Europe and $12,887,401 for Radio Liberty), Of that amount, he charged, $30 million came from the CIA. Less than $100,000 carne from the public, through a free advertising; campaign by the Advertising Council of the media in this country, and a "small part" more came from private corporations and foundations, Case said. EASING Ol' TENSION NOTED Case charged that any possible justifica- tion for this "covert funding" has lessened over the years with the easing of interna- tional tensions, The New Jersey Republican said he would. ask that administration officials be called to testify before Congress on the needs of Radio Free Europe and Radio Liberty. He noted that in 1967, after disclosures that the CIA was providing funds for the Na- tional Student Association, President John- son accepted a recommendation that "no fed- eral agency shall provide covert financial as- sistance or support, direct or indirect, to any of the nation's educational or voluntary organizations." That recommendation, which added that "no programs currently would Justify any exception to this policy," was made by John Gardner, then secretary of Health, Educa- tion and Welfare, Richard Hellas, director of CIA, and Nicholas Katzenbac`_t, then unc er- secretary of State, "The extraordinary Circunsste,nces that night have been thought to lustily circum- vention of constitutional processes" In an "emergency situation" years ago, said Caee, "no longer exist," EVIDENCE CITED Sources close to Cose say evidence exists to prove that the two stations are really ad- juncts of the U.S. government. They say that Radio Free Europe and Radio Liber_; receive classified documents iron. the Art:^r- lean consulate general in Munich for use in their broadcasts. furthermore, the sources say, Radio Free Europe sends messages to Washingtot-orc- suma`3ly to the CIA-nsinfr the secret cocking system of the consulate general. Observers here said Case merely is bring- ing out into the open a situation known in oP,'.ci^.1 circles for veal's, [From the Baltimore News-American, Jail. 24, 19711 SENATOR CASE Asirs OVERSEAS RADIO CIA FUND CUTOFF (By John P. VTallach) WASnINGTON.-Seat. Clifford P Ca?.e, R,.- N.J., announced Saturday he would introduco legislation Monday to stop the Central 1"- telligenee Agency (CIA) from continu'_ng to bankroll Radio Free Europe (RFE) and Radio Liberty (RL). Case charged that tite outlay from "secret" CIA funds has already cost the U.S. taxpayer .,several hu:tdrecl million dollars," The lie- Approved For Release 2005/08/22 : CIA-RDP72-00337R000500280004-0 Approved For Release 2005/08/22 : CIA-RDP72-00337R000500280004-0 I, /iI \J~ priblican senator sailed on the two organiza- tio?s to quit the pretense of acting as pri- vate organizations claiming to rely solely on volunt !.Iy contributions. As as replacement for covert government ful.ciing, Case proposed that Congress ap- urC iriatc the ~i30 million that is now neecled to acct the station's average annual budget. ,4,1 AVE and RL beam, in several languages, ;,,_,w> to rife zlc.t:ons of Eastern Europe and i 3c'v1 t Union. h o-t.nizations are heavily staffed by .efufms from behind the Iron Curtain, but o.,. di~tiilct from the Voice of America, b'Jir uh i - ,,,n oiiicial arm of the U.S. govern- r-,cr t anti receives all its funding from Coil- that the CIA continues io n, nco ti.e two stations amounts to a d,r, Cl attack against CIA Director Richard ~-il l,, w'no vans one of three members of a :.,.i ins st.gatory body formed after Inc disclosure in 1907 of CIA funding of the Tat oi,.h Student Association. .e cn n,'i ision, which also included John C..lic,ner, the secretary of the Department r.c:aich, Educc.tion and Welfare (HEW) a.1c Nicholas Kr,tzenbach, then secretary of ,mate, recomn :ended "no federal assistance or support, direct or indirect, to any of the nation's educational or voluntary organiza- t1O215." Cn March 29, 1907, President Johnson ac- ce, red the commission's recommendations nd ordered that they be implemented by all .mural a,,ellsies. Care alhn.>.l:iced that he would call leading s",ni:listraaion officials to testify on his bill, cl.amino :h "during the last twenty years, 'eras hnncired m.aion dollars in United o erl,rnen unds have been expended _.o.: secret CIA budgets to pay almost totally for the cost of these two radio stations. 'In the last fiscal year alone, over $?0 ...:Ilion was provided by CiA as a direct gov- ernment subsidy; yet at no time was Con- asked or permitted to carryout its t_aGaional constitutional role of approving the expenditure," Case said. Congressional sources disclosed additional evidence of the links between the stations and the U.S. government-ties that Case be- _, eves violate at least the spirit of the or. ; I, cis if ioris vii; IFIers with enable them to rn:ui:t.oin t:lx privileges and other benefits as private, non-governmental operations. Tlhe evictellce Cited was: i.t least one foreign service officer as- signed to the American consulate general in Munich is permanently assigned to helping 1 and AFL staiCers in Munich prepare broadcasts. The U.S. ofieial's chief task is to .ussur e that the program content does not dif- Icr from U.S. foreign policy. In order to keep RFE and RL personnel in- formed on current U.S. policy, the broad- castors are given access to classified and un- classified U.S. government, including CIA, documents reporting on events In Eastern Europe. U.S. government security personnel reg- ulca'iy inspect RFE and RL's headquarters in Munich to make sure facilities for keeping classified material are secure. The Suite Department runs a special pro. grain which regularly beings American em- bassy oi&oials from Eastern Europe to Munich to brief RAE and RL staffers. The station's ex- ecutives also have the use of U.S. diplomatic pouches to communicate with their offices in Washington and New York. The Voice of America maintains separate studios in Munich but its staffers freely ex- change research, background information and other documents with RFE and RL per- sonnel. Case also charged that Radio Free Europe benefits from millions of dollars of free ad- vertising under the auspices of the Ad- vertising Council, but realizes only a frac- tion of this is private contributions. "I have hc.a ac.v.., Inii ion anG else related t. was thunderous over clandestine government Nixon's mepropo and ulvimat~ effect of Mn penetration of student organizations, with POST ENDORSES HUMPHREY- this matter are However, "1 .y" questions in all the implications of potential infrir e- REUSS REVEN(IE LL this matter are eguedlly t whatever the meat on academic freedom. fate r8 _SHpiRING BI deed, It could particular argued ea*u whatever the sasr.>zs REPORT Mr. of this nation o urea Mr. Nixon QUOTED ~FIREY. Mr. President, Mon- has done the nation a co derable service senator case now quotes, whit considerable day's Washinkton Post contained a lead by Initiating what could be a highly produc- irony a recommendation made by a pre:.!- editorial which addressed itself to the tive debate on problems thht should have dentist committee which investigated that various the revenue-sharing proposals now been faced tong ago. We ark,, not referring CIA fund! before ongr&;s, here to the rhetoric of "re}olution" or to IIttirecommended that "no federal agency I am gratified the editorial singled out Mr. Nixon's own antic bo ng ("Power provide covert financial assistance or the bill that Congressman HENRY REUSE to the People") or to the J.!`Z.'d logic that support, direct or indirect, to any of the and I introduced for laudator underlies talk of "giving ba'? to the states nation's educational or voluntary organize- y mention. functions and responsibilities l he federal gov- tions," and that no programs current!} REII Senator thav put t in and "Congressman ernment acquired only bec*use the states Would justify any exception to this policy." n a bill which would refused to assume them in the first place. Sources close to Senator Case say he Is not phase the funds progressively over a Rather, we have in mind tir, valuable and trying to close down Radio Free Europe, but longer period of time, meanwhile encour- overdue focusing of attention on the urgency merely to bring into the open the govend- aging the adoption or reform of income of devising an equitable and effective re- ment's relationship to it. taxes by the States and a whole array distribution of the nation's ;tax revenue. The view here Is that the CIA for 20 years of measures designed to bring state and The argument over the precise amount of has remained the financier of Radio Frte local financial and money-45 billion-to be sh ed in the first Europe, in the Case charge, due to bureau- governmental prac- full year ar o of the general prom is a case in outdo inertia. "It's the whole question of tices at least into the Century which will shortl point. That sum s been f B 'the d tt s how does the government change; " in the Y end." too little and too m much. Butt the dispupute iiva s Words of one source. No one here suggest-- Mr. President, that is indeed the thrust not one of those conventional split-the- there Is any Machiavellian plot behind the of the Humphrey-Reuss bill--to provide difference affairs In which `the object is CIA financing, at least, not at present. increasing Federal grants to States and merely to reach agreement on the size of an The Case bill is expected to be referred to local governments to ease their fiscal outlay the federal governmesit can afford. the Senate Foreign Relations Committee. crunch and as an inducement to reform o Each argument tends to rest) instead, on a mer chaired by Sen. J. Pulbright (D) of Arkansas,, and streamline their fre enu sharin . the o I, and purpose where it Is assured a sympathetic hearing. tares and 60Yernmental sLruC- of revenue sharing. $b btliin s far too small Senator Case is a member of that committee. processes. a sum if you take at face value the Nixon Local government must be more re- administration's stated aims; In fact the [From the St. Louls Poet-Dispatch, sponsive to the needs of their' people. The White House, ritually and repep+tedly blaming Jan. 24, 19711 Humphrey-Reuss bill will authorize the the nation's social unrest on tike gap between Paor>osrs CIA CUT o1''r Ranro sTATION Ftrnvs funds to help provide these services and promise (or overpromise) an4 performance, (By Richard Dudman) to help State anti loom governments in has nonetheless started down 4t similar road Itself maki powei WASHINGTON, Jannary 23.Senator Clef- clai render themselves able to allocate these claims for r thhe e learge, tion 4s f an the-peo amount t than ford P. Case (Rep.) , New Jerrsey, proposed funds more ef>lt iently and economically. which is actually ly l less s than must by which Saturday that the United States drop the Such reform will make both present reve- state and local budgets incre ' annually. At pretense that Radio Free Europe and Radio nuns and expected Federal revenue shar- most these funds can be exp cted to miti- Liberty are private enterprises and begin A- ing go just that much further. gate a rise in local taxes, ncf to take the nancing them openly. Mr. President, I ask unanimous Coil- Place of such a rise. And fife prospective Although the two propaganda stations. sent that the Post editorial for February administration measure carri$s an Insuffl- ba been widely known to be opertalona of ens funds, incentives, stud sanctions clency of the Central Intelligence Agency, Case be- to E, 1971, be printed in the RECORD. to ensure re that the shared reenue will not came possibly the first public official to blurt 'There being no objection, the editorial merely be of help in perpetu king a variety out the truth publicly. was ordered to be printed in the RECORD, of relationships between citizen and govern- Radio Free Europe, beamed to Eastern as follows: ment and among divisions oq government Europe, and Radio Liberty, beamed to the MR. NrxoN'S MESSAGE ON REVENUE SHARING that sorely require change on grounds that Soviet Union. operate in Munich, West Qer- There were rat Wren range from moral to managerial. many, ostensibly on private contributions. y surpriaw in the It is for this last reason that others- But Case said these contributions ap- message on cress o ^sharing the President chiefly legislators and olitical theorists who parently come to less than $100,000 a year, Sent to Congress a Thursday, Mr. Bran are not known for their tscrim h nets with the With modest additional amounts 1rpln addressed himself primarily to the "general" public purse-are claiming ing th 6 the $5 bil- foundations and corporations, whereas the (or real revenue sharing of $5 billion with lion first year sum is too large. It Is too large, stations' operating expenses for rascal 1959 the states in the program's first year of they contend, to be dls ens to such un- were almost eratin0.000. operation, as distinct from the so-called p ffe "special revenue sha Properly, for a fortain ss at t when the means are at hand Re : showed copies of returns they filed consolidated grants) L mg" has (more yet t to be once o be once re sacsach t the people revenue and the nd th state ate and and would al with the Internal Revenue Service report- spelled lit s local ing that operating costs were $21,108,935 for out and which Is meant to provide governments in severest need. This alterna- RadirotFree Europe and $12,887,401 for Radio a ed pub With 411 billion for broadly de- rise wuld for toe federal gtvernment costs r y' natioon all oif Almost all the `. casts of f huat "22 AavEartsrxG The Seneral revenue nearing measure Mr. nations! welfare programs-rz{eaning that Case said he had Veen advised that_ Nixon outlined would automatically dispense share which state and local governments are tween $12,000,000 and $20,000,000 in free an amount equal to 1 3 per cent o1 the na- now obliged to pay, Meantime-the argument media space was donated ann tion's taxable personal income to state and runs-while the state and local;;"governments Mud res ually to the local governments for use as they see fit. It and their taxpayers would gain relief in the mg campaign under auspices of the is to include financial incentives for the release of state and local weltsre expendi- Advertising Council. states to maintain their own tax efforts and tures for other purposes, a nor modest sum 'In the last 20 years several hundred mu- to work out their own sharing arrangements could be allocated to a phased eneral reve- lion dollars In United States Government with local governments-"pass through" nue sharing plan that would be, In Con- funds have been expended from secret CIA formulas, as they are known, that are par- gressman Henry Reuss's terms, a "catalyst" budgets to pay almost totally for the costs ticuiariy suited to the state's individual not a " of th t t cr ese wo radio stations broadc asting to requirements and acceptable to a majority of This schu chool of thought, to hlch we are Eastern Europe," Case said. "In the last its governing bodies (such as cities, town- ourselves Inclined at this tha fiscal year alone, over $30,000,000 was pro- ships, counties) representing a majority of the automatic allocation oft fed rally col- vided by CIA as a direct government sub- its population. There Is also to be provision lected revenue to the states repz' cents a step tidy: yet at no time was Congress asked or for a federal audit which-given the ban on that will not easily be reversed $nd one with permitted to carry out, its traditional con- racially discriminatory use of the funds-- critically important long-term mplications etitutional role of approving the expends- could prove quite interesting in those cases and effects, From which it fol.[ows that it tore." where the funds might go into the general should not be taken loose2Y or ~ghtly or in Approved For Release 2005/08/22 : CIA-RDP72-00337R000500280004-0. Approved elease' 2005/08/22'.: CIA-RDP72-00300050028000 0 CONGRESSIONAL RECORD - SENATE February '10 1110 County Board of Supervisors. All Law- rence asked was that the-county resist at- tempts to build any more `highways through what is to be. known as ?Ellanor Campbell, Hayes Lawrence Park in honor of his late wife, and that the dilapidated one-lane bridge over Bid Rocky Run be replaced with a two-lane bridge faced with stone from the pre-Revolutionary quarry on the property. Lawrence added that it would be nice if the County Park Authority would allow the Rocky Run Garden Club, of which Mrs. Lawrence was-'it founder, to continue meet- ing in the old wheat mill as it has for 40 years or so. But he does not insist upon it. Th9re are those who use their philanthropy to buy a kind of immortality: to keep their names engraved in stone somewhere or to make sure soe young fellow doesn't spend the fortune in' a way of which its amasser would not have approved or to preserve some land the, former owner loved. Not Lawrence. He confesses affection for the trees that cover most of Middlegate Farm, but he doesn't demand their preservation. He'd like the mill, one of the largest and oldest- in the county, to be restored (the ' Lawrences have used it as a guesthouse) but doesn't require it. "The place will be theirs," he said. "I ex- pect they'll take care of it. Ellanor and the children and I have had a great deal of pleas- tire from it and I -hope the people of the county will." Lawrence will talk about the land; which was camped on and fought over by both sides during the Civil War Battles of Bull Run (First and Second Manassas), but dis- courages questions about himself and his philanthropy. "My wife loved the trees, couldn't stand to have one cut and didn't like to see them fall. She picked the land when we bought it in 1935 (the bulk of it for about $16.000). It Was in her name. In her will (Mrs. Lawrence died in June, 1969) she said it was to be do- nated to a beneficiary of my choice. . "Through the years the Scouts and other groups had come to study nature there, so I thought we should leave it to the people who live In Fairfax and their friends," Actually, Middlegate Farm is Lawrence's second major gift to Fairfax residents. The first, and some would' say the most important one, was the county eecutive form of govern- ment, which was adopted by the voters in 1950 after a masterful campaign designed and executed principally by Lawrence. In that fight he took on and beat every powerful political group: the- entrenched Byrd Organization under the so-called Court- house Crowd headed bythe late Circuit Judae Paul E. Brown, and the coalition that had de- veloped the reform movement, which includ- ed the League of Women Voters, the Federa- tion of Citizens Associatioii and the Good Government League. He also beat down the chairman of the county's governmental study commission, of which Lawrence was. vice chairman, The Byrd Organization was trying to hold on to the extsting' county board form, under which power was concentrated in the hands of Judge Brown, able and articulate and arch- conservative. I The coalition, including Lawrence's chair- Ixlan, was presing for the county manager form, under which all members of the ruling board would have been elected at large. Lawrence cried a pox on both their houses in this pre-election letter to The Washing- ton Post: "The political power today in Fairfax County ... is vested primarily in a few offi- cials, ,who are elected,by county-wide voting. They are the ones" who are today' fighting change in Fairfax County'sgovernment. "Their brothers under the skip-the polf- ticians who arj lurking behind the pressure groups to take over under the county manager system-will be more firmly entrenched in been... cottage, everything he passes in the mill. He "Each voter would be voting for six super- hasn't really lived at the farm since Mrs. visors under the county manager plan. It is Lawrence died. conceivable that the voters in one district will know enough about the personal capacity of any of the 10 or more candidates for the FADIO FREE EUROPE AND RADIO board from the other districts--or -will the LIBERTY voters have to depend upon the political ma- chine or a coalition of pressu::?e groups to hand them a slate on which to vote ' ja'?" ? That kind of rhetoric apparently blew all his opponents down, good gi:.ys and bad buys together, because the voters gave their "ja" to Lawrence's plan by 5,210'o 3,502. Lawrence then headed a team that put the county executive form into effect over a two- year period. The new government wasn't per- fect by any means-several supervisors have go'ne to prison for zoning bribery conspiracy- but the more efficient and flexible county executive system at least survived the popu- lation boom that started in the 1950s. Judge Brown, a Virginia gentleman of the old school, was not one to let political differ- ences interfere with friendships. He con- tlnued to invite Lawrence as a speaker before the Off the Record Club, a group of Fairfax squires who met to discuss pclitical issues privately and informally. The squires no longer meet. Most are dead or retired. But David Lawrence marches on, cranking out five newspaper columns a week as' he has for 55 years, plus the back page spot in the magazine. Whethetr he's at his vacation home in Sarasota, Fla. the farm or hi's suite at the Sheraton-Carlton Hotel, he always has his news ticker and a direct tele- phone line to his office at U.S. News. His lifetime routine remains unbroken, al- though a friend said "it's just a routine now, with Ellanor gone. She was the center around whom he revolved." Lawrence said it himself during the Medal of Freedom award ceremony at the White House on April 22: "I have a sentimental interest in the White House. I started writing about White House activities when I graduated frcm Princeton in 1910 when Mr. Taft was President ... It ad happened in the early years I was sitting in the White House lobby when a beautiful girl went through to call on a member of the secretarial staff. Two and a ha:.f years later she became my wife. We were married for al- most 51 years. the 'Lord sent Ire one of the most wonderful companions in the world and he took her away last year. I know if she could have been here she would have ap- preciated this hour very much, and I do, too. "Thank you. Mr. President." The President: "I'am sure she is here right now." Now, he doesn't want to talk about her with strangers. He shrugged off questions about the award scrolls and plaques. cover- ing two walls of his office, which he has ac- cumulated over the years. Never mind the Presidential Medal of Freedom presented to him "and seven other old guys." 'Lawrence is a very private man. And a busy one. He steps carefully now, not so big and vigorous as once, but he steps rieh.t along, aided and abetted by Obadiah William Person, his chauffeur of 27 years, who maneuvers the huge black Cadll ac limousine through Washington traffic with a skill and abandon that would make arty nut in a Volkswagen envious. The Cady Goes not have low-number license plates. It wouldn't occur to' Lawrence to ask for them. although the President says Lawrence is the journalist he has known longest and best. Out to the farm, rosring down Rt. 66 to the Centreville exit. Whipping past his lands and his pond and the Civil War earthworks. First stop, the wash house, toturn on the ticker. Paper jams. Damn machine won't work. Never mind. Lawrence seems to be in a hurry, although he assures his interviewer he's not. The Mr. PEARSON. Mr. President, my dis- tinguished colleague from New Jersey (Mr. CASE) has raised for scrutiny by .Congress and the public the question of covert funding by the Central Intelli- gence Agency of Radio Free Europe and Radio Liberty. He has proposed legisla- tion to authorize public funding of these stations. His statements have been well covered by the press, and considerable information?of potential value to Sena- tors is contained in this group of articles, which I ask unanimous consent to have printed in the RECORD. There being no objection, the articles were ordered to be printed in the RECORD, as follows: [From the New York Times, Jan. 24, 1971] CASE WOULD BAR CIA AID FOR RADIO FREE EUROPE (By Benjamin Welles) WASHINGTON, January 23.-Senator Clif- ford P. Case, Republican of New Jersey, charged today that the Central Intelligence Agency had spent several hundred million dollars over the last 20 years to keep Radio Free Europe and Radio Liberty functioning. Mr. Case, a member of the Appropriations and Foreign Relations Committees, said that he would introduce legislation Monday to bring Government spending on the two sta- tions under the authorization and appro- priations process of Congress. Representative Ogden R. Reid, Republican of Westchester, said today that he would introduce similar legislation in the House. Radio Free Europe, founded in 1950, and Radio Liberty, formed a year later, both have powerful transmitters in Munich, West Ger- many, staffed by several thousand American technicians and refugees. from Eastern Eu- rope. Radio Liberty broadcasts only into the Soviet Union, Radio Free Europe to other Eastern European countries except Yugosla- via. Both organizations have offices in New York and purport to be privately endowed with funds coming exclusively from founda- tions, corporations and the public. Both, however, are extremely reticent about the details of their financing. Senator Case noted in a statement that both Radio Free Europe and Radio Liberty "claim to be nongovernmental organizations sponsored by private contributions." How- ever, he went on, "available sources indicate direct C.I.A. subsidies pay nearly all their costs." The Senator said that the Central Intelli- gence Agency provided the stations with $30- million in the last fiscal year without for- mal Congressional approval. DISCLOSURES RESTRICTED Under the Central Intelligence Agency's operating rules, its activities-such as covert funding-are approved by the National Se- curity Council. However, disclosure to Con- gress is limited to a handful of senior legis- lators on watchdog committees of each house. The Central Intelligence Agency and Ra- dio Free Europe both declined to comment today on Senator Case's statement. Efforts to elicit comment from Radio Liberty were unavailing. Covert C.I.A. funding of the two stations has, however, been an open secret for years,. although the C.I.A., in accordance with Approved- For Releas 2005/08/22 : CIA-RDP72-00337R000560280004-0 Approved For Release 2005/08/22 : CIA-RDP72-003378000500280004-0 February 11, 1971 CONGRESSIONAL RECORD -SENATE A change in the law will be necessary be- fore the small farmer can be helped. The set- aside eligibility requirement was delayed one year by an administrative order from the U.S. Department of Agriculture. With this thinking we fully agree, as will all those interested in the plight of our farmers under this legislation. I ask, unanimous consent that the en- tire Hackethorn article, "Plow Up That Grass, Gain 'Flexibility,"' be printed in the RECORD. There being no objection, the article was ordered to be printed in the RacoRD, PLOW Ui. THAT GRASS. GAIN "FLEXIBILITY" (By Jack Hackethorne) The Administration's new farm bill has sma11 farmers in a pickle. Recently an- nounced changes in eligibility set-aside pro- visions have quieted some of the rumbles from larger farmers, but even they had been unhappy about plowing up grass to comply with a set-aside provision requiring acres to be rotated. A change in tfie law will be necessary be- fore the small farmer can be helped. The set-aside eligibility requirement was delayed one year by an administrative order from the U.S. Department of Agriculture. In Nodaway County, for example. 691 farms have a feed grain base of 25 acres or less. Many are maintaining their homeson these farms. Many of these small farms are owned by retired farmers drawing a small govern- ment payment and, in some cases, Social Security. Many of these farms have been seeded for pasture and has. If price support payments are collected, the new law requires a rnini- mum of 45 percent of feed grain base be planted or the base will be reduced each year, eliminated after three years. To protect this base will require this grass land be broken out. Not only will this add to soil erosion and pollution problems but some farmers will be forced off the farm. Emery Shell has an 88-acre farm south of Pickering. He is 73 years old and has lived on this place since 1949. Shell has a 20-acre feed grain base, seeded to grass since 1981. "Now, to qualify. I must plow up some of the good grass and plant corn," he says. "It ought to raise good corn. It has had a rest1 but I would be better off the way it was under Carl E. Holzer lives on 78 acres south, of Maryville. At 79, "I am not able to farm any more. All my ground is in grass and is ter- raced. I have been trying to get It all in grass. It is good farming and there Is no erosion, and will be better land when -t leave than what I moved on 40 years ago, I have no need for corn, and at my age 1 hate to plow up any grass." - Elbert Risser, Route 1. Sheridan has 200 acres, "would just as soon have the entire farm seeded down in grass and 'feed a few cows. Now I will have to plow u + 21 acres of fescue that would make an wful lot of winter pasture just to save fe grain base." A controversial section of the program dealing with set-aside acres as temporarily delayed a year after a loud mble from the /1 Under the old farm program (Act of 1985) farmers were urged to take 'land out of feed grain production and to divert acres to soil conserving crops such as grass. If farmers harvest a crop from these diverted acres they lose government payment and price sup- ports, Under the Administration's new program farmers were asked to set aside acres (prob- ably 20 percent of the feed grain base but the figure is yet to be announced) and take them out of production. If they set aside these acres along with conserving acres they would be free to grow all the corn and other feed grains they want on remaining acres. The catch Is that the set-aside acres must have been used to grow crops in one of the past three years. This virtually rules out land diverted from production from year-to-year under the previous program. The effect would be to force farmers to rotate acres set aside each year. This would have disrupted crop- ping plans and increased costs by making it necessary to plow up land already seeded to grass and established gram seedings cn land intended for feed grain crops. H. H. Wooiridge. In Cooper County, thinks the provision to "silly" and the delay should be made permanent. "I have been using 2, pounds of Atrazine per acre to keep the weed and grass out of my corn for about 12 ye Grass will not grow on this ground. It c~bes not make sense to plow up good grass, and plant corn and then expect to establish a good cover of grass on those fields th7(t have been in corn." : I). T. Weekley, who farms near Backwater. said. "They are asking us to destroy what we have already done and to startover again." NOTHING TO FEAR FROM FBI Mr. HRUSKA. Mr. dent, last year the Congress passed tl (Organized Crime Control Act of 1970 v1ruch imposed great new responsibilities on the FBI. These included new areal of combating orga- ntzed crime and fn investigating bomb- ings at institutions receiving Federal as- sistance. Sho;ly after this act was passed, the Cgpgress also approved a sup- plemental appropriation for the FBI to enable that agency to employ an addi- tional 1,000 special agents to handle the new duties. A grei I amount of misinformation was circulated about this increase of FBI manpower and the added responsibilities withi'espect to bombings. It was alleged the FBI was going to swamp college campuses around the country with Its agents and take over the policing of student activities. Nothing could have been further from the truth. Recently I came across an editorial In the Panama City, Fla., News $erald which speaks clearly to the charges that the FBI was going to be used to c ul freedom of speech on campuses. I it is important to make this editorial comment a matter of record for the Con- gress and ask unanimous consent to in- clude It in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: NorxiNa To Fran Estoss FBI since its inception the Federal Bureau of Investigation has been and continues to be Just what the title implies, an investigative arm - of taw enforcement. It is not a federal police force. Neither is it Judge and jury for alleged criminal actions. Alarmists, however, are crying again that the I'BI plans to "saturate" college campuses with officers to curtail liberty and freedom of speech. The whispering campaign against the FBI stems from President Nixon's provision for appointment of 1,000 additional agents in the fight against organized crime. The Organized Crime Control Actof 1970 signed into law Oct. 1 specifically gives the FBI the responsibility for investigating bombings or bombing attempts on federal property or any institution receiving federal financial assistance. The notion that such action presents a threat to the country Is ridiculous. 1323 As FBI Director J. Edgar Hoover observed. the FBI would be "more than pleased if it were never necessary to investigatea single bombing under the new act." There's really nothing sinister ancd menac- ing about investigation acts of bombing and terrorism. They've almost doubled in num- ber over.1969, and persons who worry about "repressive" law enforcement mighi better expand their energy in working to, prevent these' crimes. GIFTS OF DAVID LAWRENCE Mr. BYRD of Virginia. Mr. President, the February 11 edition of the Wash- ington Post includes an article 4n sir. David Lawrence, by Hank Burchard, a Washington Post staff writer. The article describes Mr. Lawrence's philanthropies, which have been-gener- ous and of great benefit to the people of northern Virginia. Mr. Lawrence is one of the Nation's most distinguished Journalists. His was the first newspaper column to be syndi- cated by wire. He became president and e c for of U.B. News In 1933 and since 1959 has been chairman of the board and editor of U.S. News & World Report. More than 300 newspapers carry Mr. Lawrence's daily column. At the age of 82, Mr. Lawrence con- tinues to write his column and maintain his interest in world affairs. HIS long career is one of singular achievement. David Lawrence is a great newspaper- man. a great American, and a wonderful friend. I ask unanimous consent that the text of the Washington Post article "Gifts of David Lawrence" be included it this point in the RECORD. There being no objection, the article was o"dered to be printed in the tIZCORD as follows: Grrrs or DAvm LAwRzmc$ (By Hank Burchard) David Lawrence came into this world with very little and wants to go out of it the same way, not that he's in any hurty. Lawrence, 82, dean of American syndi- cated newspaper columnists (he inve>ated the form In 1916), founder of his own news ser- vice and a flourishing weekly newsmagazine, friend and/or chastiser of Presidents from Taft to Nixon, respected spokesman for what might be called the Old Right, should be a wealthy man. Ise Isn't. He has given most of it away, Lavl'rence sold the news service, called the Bureau of National Affairs, to Its eniployees in 1948 and did the same with his maga- zine, U.B. News & World Report, In 1962, at what associates called bargain prices. The last of his major possessions, tbe?mag- nificent Middlegate Farm near Centr5ville in Fairfax County, be gave to the people of the county in December, final title to pats when he does. The farm is 639.8 acres, two-tenths of an acre less than one square mile. It we}s given without strings, lock, stock and barrel, in- cluding houses (3), furnishings, mementos and all-.every thing except the news tele- type printer In the wash house, which Is the property of the Associated Press. The rolling, wooded acres are ass4:;sed at $5 million, but the land is actually priceless. there being no other such piece of private property In the county, He gave it the way he always dogs these things, the way he gave land for three Cen- trevale churches, diffidently and at a dis- tance. He gave the farm by sending' s note Approved For Release 2005/08/22 : CIA-RDP72-00337R000500280004-0 .February 1i standing policy, and the two stations them- some sources said, had cut off covert funding casts to Bulgaria, Hungary, Poland, Czecho- s or retheir fused funding. s uss from virtually all other recipients. slovakia and Romania. Radio Liberty, opened either their operation -They solved all the tough ones," one a year later, concentrates only on the So- Citing returns filed with the Internal Rev- source said, "but they were under such __ viet Union. In 1956, Radio Free Europe was enue Service in the 1969 fiscal year, Mr. Case preiasure from Johnson to get their report criticized for raising false hopes of help for said that the, stations' combined operating costs that year totaled $33,997,h36. Of this, he said, Radio Free Europe spent $21,109,935 and Radio Liberty 1x12,887,401. FUNDS SOUGHT BY ADVERTISEMENT "The bulk of Radio Free Europe's and Radio Liberty's budgets, or more than $30- million annually, comes from direct C.I.A. subsidies," Mr. Case charged. "Congress has never participated' in authorization of funds to R,F.E. Or R.L., although hundreds of mil- lions of dollars in Government funds have been spent during= the last 20 years." Mr. Case pointed out that Radio Free Su- rope conducted a 'yearly campaign for ' pub- lic contribution's under the auspices-of the Advertising Council. Between" $12-million and $20-million in free media space is do- nated annually to this campaign, he said, but the return from the public is "apparently less than $100,000." Furthermore, he said, . both stations at- 'tempted to raise money from 'corporations and foundations. but contributions _from these sources reportedly pay only a small part of the .stations' total 'budgets. ` Senator Case said that his proposed leg- islation would seek to amend the United States Information and Educational Ex- change Act of 1948 to authorize funds for both stations in the-fiscal year beginning next July 1. His proposal would call for an initial sum of $30-million,.but he said that the sum would be subject to change. BAR ON OTHER FUNDS At the same time, Mr. Case said, his pro- posal would provide that "no other" United States Government funds could' be made available to either station except under the provisions of' the act. He also said that he would ask that Administration officials con- cerned with overseas information policies be Called to testify in order to determine the amount needed for the station's operations. "I can understald why covert funds might have been used for, a' year or two in an emer- gency situation when extreme secrecy was neCe"~sary and when no other Government funds were available," Mr. Case said. But, he went on, the justification for covert funding has lessened over the years as international tension has eased, as the secrecy surrounding the stations has "melted away," and as more open means_of funding could be developed; "In other words," he said, "the extraordi- nary circumstances that might have been thought to justify circumvention of consti- tutional processes- and Congressional ap- 'proval no longer exist." JOHNSON CREATED XXX Mr. Case pointed out that in 1967, after there had been. public disclosure that the C.I.A; had been secretly funding the National Student Association, President Johnson Cre- ated a committee that was headed by Nicho- las de B latzenbach, the Under Secretary of State, and 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, 1967, Mr. Johnson publicly accepted the com- mittee's recommendation that "no Federal agency shall provide covert financial assist- ance'or support, direct or indirect, to any of the nation's educational or voluntary or-. ganizations" and that "no programs cur- rently would justify any exceptions to this policy." People familiar .with the, operations of Radio Free Europe and Radio Liberty noted that both had been started at the peak of the Cold War and had , just "gone rolling on" ever since, The Katzenbach committee, out and get the heat from Congress and the public cut off that they didn't solve the funding of the stations. They turned it over to another committee." The second committee, whose members these sources declined to identify, worked over a year and then turned in secret rec- ommendations to Mr. Johnson. However, Mr. Johnson pigeonholed the recommendations and. finally left the problem for the incoming Nixon Administration to solve, the sources said. {From the Baltimore Sun, Jan. 24, 19711 PUBLIC FINANCING OF OUTLETS ASKED; RA- DIo FREE EUROPE Now IN CIA SPHERE, CASE WARNS (By Peter J. Kumpa) WASHINGTON, January 23.-Senator Clif- ford P. Case (R., N.J.) announced today that .he will introduce legislation Monday to pro- vide for open congressional financing of Ra- dio Free Europe and Radio Liberty. 1'[r. Case explained that, if approved, the legislation would remove the stations from the need for secret funds from the Central Intelligence Agency. He said that in the last fiscal year, the CIA provided a direct subsidy .of $30 million to the stations which broad- cast to the Soviet Union and five Eastern Eu- ropean Communist countries. Although both Radio Free Europe and Ra- dio Liberty claim to be non-governmental or- ganizations sponsored by private (;ontribu- tions,~ the senator said that `available sources" indicate the CIA pays :.most all their :costs. PRODUCES TAX RETURNS He produced figures from returns :`fled with the Internal Revenue Service showing that the combined operating costs for the stations In fiscal 1969 was almost $34 million ($21,- 109,935 for Radio Free Europe and $12,887,- 401 for Radio Liberty). Though a national advertising campaign under the auspices of the Advertising Coun- cil uses somewhere between $12 and $20 mil- lion in free media space to solicit contribu- tions for the stations, Mr. Case said, returns from the public amount to less than $100,000. The stations raise the rest of their budgets from corporate and foundation contribu- tions, he said. "Congress has never participated in au- thorization or appropriations of funds to Ra- dio Free Europe or Radio Liberty, although hundreds of millions of dollars in govern- ment funds have been spent during the last 20 years," Senator Case said. "I can understand why covert funds might have been.used for a year or two in an emer- gency situation when extreme sec:rrecy was necessary and when no other government funds were available" he went on. ' LESSENING OF TENSION But now, the senator asserted, with the lessening of international tension and with the melting of secrecy, some means of open financing of the stations should have been provided. "In 'other words, the extraordinary cir- cumstances that might have been thought to justify circumvention of constitutional processes and congressional approval no long- er exist," Senator Case said. The senator was not critical of the work of the stations, both of which have their main Pfflces.and studios in Munich, Ger- many.His'legislation, in fact, would author- ize $30 million for continuation of their work. He simply wants Congress to super- vise the spending of taxpayers' money. Radio Free Europe, started in 1950, broad- Informed congressional sources have no doubts about the close tie-up between the the stations and the' government. A full-time liaison officer from the con- sulate in Munich is assigned to go over pro- gram content to make it conform to U.S. government policy, they point out. Because classified as well as unclassified government information Is provided, security personnel check out the stations, the same sources report. Further, they say U.S. embassy officials from Eastern Europe get briefings at Radio Free Europe. The station, in turn, uses the coded communications of the Munich con- sulate to keep in touch with Washington, the sources report. Though their studios are in Germany, the transmitters for the stations are in Spain, Portugal and Taiwan, all countries with spe- cial arrangements with the -United States, the sources report. THE 1967 PANEL'S FINDINGS In 1967, after disclosures of CIA financing of the National Student Association, a presi- dential committee made up of John Gard- ner, then Secretary of Health, Education and Welfare, Richard Helms, CIA director, and Nicholas de B. Katzenbach, then under secre- tary of State, recommended that no federal agency should provide covert funds for any of the nation's "educational or voluntary organizations." President Johnson accepted the commit- tee's recommendations. On March 29, 1967, he ordered all federal agencies to implement them. Senator Case's bill, similar to one shortly to be introduced in the House by Represen- tative Ogden R. Reid (R., N.Y.), would pro- vide funds for the stations out of the In- formational and Educational Exchange Act. It would forbid funding by any other govern- ment channel. [From the Christian Science Monitor, Jan. 25, 1971] CIA AGAIN CHARGED WITH POLICY MEDDLING (By Robert P. Hey) . WASHINGTON.-Once again, charges of Cen- tral Intelligence Agency influence on U.S. foreign policy are reverberating through Congress. Sen. Clifford P. Case charges that Radio Free Europe and Radio Liberty actually are financed-clandestinely-by the CIA, to the tune of more than $30 million annually. The New Jersey Republican alleges "sev- eral hundred million dollars in United States Government funds" have been given these stations over the past 20 years without con- gressional approval-or even knowledge. In New York, Bernard Yarow, senior vice- president of Radio Free Europe, says his organization's reaction to the charges is: "No comment." SUPPORT SUPPOSEDLY PRIVATE Both stations beam information to Com- munist-controlled nations in Eastern Europe. They have stoutly maintained for years that they were financed through private contri- bu?tfcns. Senator Case, the New Jersey Republican, thinks it is high time all this was brought out into the open. He has introduced legis- lation to have the finances of both stations provided, openly, through the same author- ization-and-appropriation process through which Congress controls the budgets of most governmental agencies. These changes strengthen one present trend-the increasing insistence of Con- Approved For Releas 2005/08/22 CIA-RDP72-00337R000500280004-0 26 Approved For e MA3ZVtYA72 fflU72ffli R00050028 0eW ry grew--particularly the Senate---on exerting influence upon the direction of United United States foreign policy. But all this also seems like a page out of the recent past. In 1967 it was disclosed that the CIA was funding what had been presumed to be an organization of students without government links, the National Stu- dent Association. The uproar at that time was thunderous over clandestine government penetration of student: organizations, with all the implications of potential Infringe- ment on academic freedom. EARLIER REPORT QVOTEn Senator Case now quotes, with considerable irony, a recommendation made by a presi- dential committee which Investigated that CIA funding. it recommended that "no federal agency shall provide covert financial assistance or support, direct or indirect, to any of the nation's educational or voluntary organiza- tions," and that "no programs currently would justify any exception to this policy." Sources close to Senator Case say he is not trying to close down Radio Free Europe, but merely to bring into the open the govern- ment's relationship to it. The view here is that the CIA for 20 years has remained the financier of Radio Free Europe, in the Case charge, due to bureau- cratic inertia. "It's the whole question of how does the government change," in the words of ape source. No one here suggests there is any Machiavellian plot behind the CIA financing, at least, not at present. The Case bill is expected to be referred to the Senate Foreign Relations Committee, chaired by Sen. J. Fulbright (D) of Arkansas, where it is assured a sympathetic hearing. Senator Case is a member of that committee. [From the St. Louis ost-Dispatch. San 24.19711 PROPOSES CIA Cur Orr RADIO STATION FONDS (By Richard Dudman) WASNXNGTON, January 23.--Senator Clif- ford P. Case (Rep.). New Jersey. proposed Saturday that the United States drop the pretense that Radio Free Europe and Radio Liberty are private enterprises and begin fi- nancing them openly. Although the two propaganda stations have been widely known to be opertalons of the Central Intelligence Agency, Case be- came possibly the first public official to blurt out the truth publicly. Radio Free Europe, beamed to Eastern Europe, and Radio Liberty, beamed to the Soviet Union, operate in Munich, West Ger- many, ostensibly on private contributions. But Cue said these contributions ap- parently come to less than $100,000 a year. with modest additional amounts from foundations and corporations. whereas the stations' operating expenses for fi3cal 1969 were almost $34,000,000. He showed copies of returns they filed with the Internal Revenue Service report- ing that opertaing costs were $21,109,935 for Radio Free Europe and $12,887,401 for Radio Liberty. tREE ADVERTISING Case said he had been advised that be- tween $12,000,000 and $20,0f 0,000 In free media space was donated annually to the fund raising campaign under auspices of the Advertising Council. "In the last 20 years several hundred rail- lion dollars in United States Government funds have been expended from secret CIA budgets to pay almost totally for the costs of these two radio stations broadcasting to Eastern Europe," Case said. "In the last fiscal year alone, over $30,000,000 was pro- vided by CIA as a direct government sub- sidy: yet at no time was Congress asked or permitted to carry out its traditional con- stitutional role of approving the expendi- ture." The Senator said he would introduce a bill Monday amending the United States Infor- Fnation and Educational Exchange Act of !948 to authorize funds for the two stations in fiscal 1972. The bill also would provide 'hat no other U.B. Government funds may go to either radio station except under provi- -1ons of the act. POST ENDORSEE, HUMPHREY- REUSS REVENUE-SHARING BILL Mr. HUMPHREY. Mr. President. Mon- day's Washington Post contained a lead editorial which addressed itself to the various revenue-sharing proposals now before the Congress. I am gratified the editorial singled out the bill that Congressman HENRY REVSs and I introduced for laudatory mention. Senator HUMPHR?Y and "Congressman Russ have put in a bill which would phase the funds progressively over a longer period of time, meanwhile encour- aging the adoption or reform of income taxes by the States and a whole array of measures designed to bring State and local financial and governmental prac- iices at least into the century which will shortly end." Mr. President, that is indeed the thrust of the Humphrey-Reuss bill-to provide Increasing Federal grants to States and local governments to ease their fiscal crunch and as an inducement to reform and streamline their governmental struc- tures and processes. Local government must be more re- sponsive to the needs of their people. The Humphrey-Reuss bill will authorize the funds to help provide these services and to help State and local governments render themselves able to allocate these funds more efficiently and economically. Such reform will make both present reve- nues and expected Federal revenue shar- ing go just that much further. Mr. President, I ask unanimous con- sent that the Post editorial for February 81 1971, be printed in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: MR. NIXON'S Mse8A5E ON REVENUE SHARING There were not many surprises in the message on revenue sharing the President sent to Congress on Thursday. Mr. Nixon addressed himself primarily to the "general" (or real) revenue sharing of $5 billion with the grates in the program's first year of operation, as distinct from the so-called '-special revenue Sharing" (more properly. consolidated grants) that has yet to be spelled out and which is meant to provide the states with 811 billion for broadly de- fined purposes. The general revenue sharing measure Mr. Nixon outlined would automatically dispense an amount equal to 1.3 per cent of the na- tion', taxable personal income to state and local governments for .sae as they aee fit. It is to include financial Incentives for the states to maintain their own tax efforts and to work out their own sharing arrangements with local governments-"pass through" formulas, as they are known, that are par- ticularly suited to the state's individual requirements and acceptable to a majority of its governing bodies (such as cities, town- ships, counties) representing a majority of Its population. There is also to be provision for a federal audit which-given the ban on racially discriminatory use of the funds- could prove quite Interesting In those cases where the funds might go Into the general 1971 treasury of a state or local government: It is not Inconceivable that with 9sch a mix- ture of moneys, the federal govertment would acquire more leverage than it pow has in eliminating discrimination frortl. state-sup- ported programs. This, to be sure, remains in the realm of speculation as does so much a related to the meaning and ultimate a ct of Mr. Nixon's proposal. However, "iffy'uestions in this matter are especially Inesting-in- deed, it could be argued that v+ satever the fate of this particular measure, Mr. Nixon has done the nation a consideltsble service by Initiating what could be a hi sly produc- tive debate on problems that should have been faced long ago. We are apt referring here to the rhetoric of "revoh#l ion" or to Mr. Nixon's own antic borrowing ("Power to the People") or to the elided logic that underlies talk of "giving back" Ito the states functions and responsibilities the' federal gov- ernment acquired only becausd the states refused to assume them In the first place. Rather, we have in mind the valuable and overdue focusing of attention onthe urgency of devising an equitable and tffective re- distribution of the nation's tad revenue. The argument over the precise amount of money--$5 billion-to be shared: in the first full year of the general program. is a case in point. That sum has been faulted both as too little and too much. But th. dispute is not one of those conventional split-the- difference affairs in which the object is merely to reach agreement on the size of an outlay the federal government'; can afford. Each argument tends to rest, instead, on a particular theory of the merit and purpose of revenue sharing. $5 billion is far too small a sum if you take at face valulc the Nixon administration's stated aims. to fact the White House. ritually and repeat , dly blaming the nation's social unrest on the dap between promise (or overpromise) and performance, has nonetheless started down a timllar road itself in making large. power-t-the-people claims for the dispensation of an amount which is actually less than that by which state and local budgei.s increase knnually. At most these funds can be expected to miti- gate a rise In local taxes, not o take the place of such a rise. And the, prospective administration measure carries an insuffi- ciency of funds, Incentives, and sanctions to ensure that the shared revenue will not merely be of help in perpetuating a variety of relationships between citizen `and govern- ment and among divisions of government that sorely require change on grounds that range from moral to managerial. It Is for this last reason that others- chiefly legislators-and political theorists who are not known for their scrimpiiiess with the public puree-are claiming that the $5 bil- lion first year sum Is too large. It is too large, they contend, to be dispensed to such un- certain effect when the means cre at hand for a pass at revenue sharing that would at once reach the people and the state and local governments In severest need. this alterna- tive would be for the federal g&.,ernment to assume all or almost all the costs of our national welfare programs-meaning that share which state and local governments are now Obliged to pay. Meantime- tie argument runs-white the state and local governments and their taxpayers would gain ;relief in the release of state and local welfare expendi- tures for other purposes, a more modest sum could be allocated to a phased general reve- nue sharing plan that would be. In Con- gressman Henry Reuss's terms. ?a "catalyst" not a "crutch." This school of thought, to vhich we are ourselves inclined at this point, holds that the automatic allocation of f f deraliy col- lected revenue to the states represents a step that will not easily be reversed 4ad one with critically Important long-term implications and effects. From which it follows that it should not be taken loosely or `lightly or in Approved For Release 2005/08/22 : CIA-RDP72-00337R000500280004-0 E 6758 Appr9ve,% L~~1NA~ REG t CAA x i;79,0 7RQ gQ280004 ne O, 1971 ington to end its covert financing by the C.I.A. and to finance and operate it on a new open basis. The situation s matters taken into hand quickly, for as stand, Rinds will run out for RFE-and for Radio Liberty, which broadcasts to the Soviet Un- ion-quite soon. The two stations are much too valuable to be lost in a summer haze. E t European'"governmen'ts resentful of BYERNE SPTtAGIN'S HONORED AS PUBLIC CITIZEN HON. ROBERT E. JONES O8 ALABAMA K N THE HOUSE OF REPRESENTATIVES Tuesday, June 29, 1971, RFE`s broad appeal to their populations have Mr. JONES of Alabama. Mr. Speaker, Iong stewed and fulminated about it-along a recent editorial in the Huntsville, Ala., with' pulling such dirty tricks as putting poison in the salt shakers of its Munich Times honored Mr. Bierne Spragins, one headquarters. They could do little more, un- of Alabama's most outstanding residents. til Willy Brandt opened his policy of re- I have known Mr. Spragins for more than conciliation with the East. Then, sensing an 25 years, and I have never known a more opportunity for leverage, they said that his dedicated public citizen. Ostpolitik and RFE are incompatible. In fact. they are not, but Germany was embarrassed. The editorial remarks in the Huntsville Once Mr. Nixon made clear his position that Times cite the high points of his illus- Americans troops and American radios in tr[ous career of service to his community Germany are part of a package, hower. and its constant improvement. Beyond Bonn diplomatically told the protesting East this record he is congenial and friendly. Europeans to cool down. He Is most gallant and chivalrous in all Some East European governments bored in his deportments. I am gratefl;l that he harder when Senator Clifford Case stated has allowed me to be his friend through d known h a publicly what almost everybody r years--that the C.I.A. finances RFE (and fo Radio Liberty). Poland, for instance, called upon the United States last month to put RFE off the air. Senator Case's point was to get RFE out in the open and so he offered a bill to finance It by direct appropriations, through the State Department. The administration, correctly contending that much of RFE's audience ap- peal lies in its appearance of independence from 'the American government, countered with a, bill to set up a publicly funded "pri- vate" corporation to run both RFE and RL. (West Germany, for its own reasons, favors the latter approach.) In the meanwhile, there arose on Capitol Hill legitimate ques- tions about the cost of the stations, their re- searcli functions, their relationship to other American propaganda and cultural programs, and their coordination with political efforts for detente. The administration did not al- low enough time for Congress to cope ade- quately with these questions and, as a result, the stations are now hanging by the thread of a continuing resolution which provides funds only until August. _ We do not have dogmatic views on the kind of organizational home the stations ought to have or on the size of their budgets or the scope of their non-brdadoasting activities. We would like to make the emphatic point, however, 'that RFE' aril III, do an extremely important job and, in our judgment, do it well. RFE still carries an image of Irresponsibil- Ity dating from its indeed-irresponsible words of encouragement to Hungarian rebels in 1956. Together, AVE and RL have the reputa- tion of being the voices of bitter emigres and primitive anti-Communists. The two stations, .however, have considerably changed and they can no longer be fairly accused of the sins of their past. What they do now is to com- municate directly with. the people of East Europe who want tp listen to them in order to learn what they cannot learn from their 6$4n captive press And radio. The stations do not incite to revolution or preach anti-Com- teners to deny tiger their choice of radio fare. Detente, if it means 'anything, means widening the West's contacts with the East. not helping the East to seal off its people from the Lest. It means the exchange of peo- ple, goods, words and ideas. This is the essen- tial business of RFE and RL. The Congress, in Its 1ghtminded determination to shake the station free of the CIA, should not lose sight of the reason for letting them con- the years. \ At this point I wish to include the comments of the editorial as a part of my remarks : BIERNE SPRAGINS WAS TH]:RE Things have changed these past 50 years for Huntsville and its Rotary Club; but then some things are pretty much the. same. For instance, when Rotary met this week, just as irL 1920, Bierne Sprag'ins was there. The local club, for no special reason but for lots of good ones, therefore, raid tribute to its longtime member and former president (:1932-33) for a life-time of effort in behalf of this community's development. We lend our applause. Mr. Spragins is known generally as a banker. And that he is, having begun at the First National in 1919, soon after returning from World War I service in France. After an interlude operating the family's Ice-and- coal company, he returned to First National Bank in 1933 as executive vice president and in 1935 succeeded his father, the late R. E. Spragins, who had served in that capacity ed.n.ce 1909. BOOKBURNERS AND'CULTURAL CENSORS AT WORK HON. JOHN R. RARICK OF LOUISIANA IN THE HOUSE OF REPRESENTATIVES Tuesday, June 29, 1971 Mr. RARICK. Mr. Speaker, in nearby Montgomery County of Maryland the bookburners are back censoring and sup- pressing free speech in education. The latest cultural work to be purged is "Little Black Sambo," printed in 1899 and enjoyed for generations by our youth with no qualms of conscience or psychological backlash. The retort of the censor that the de- cision was not to be construed as book- burning clearly shows a guilt feeling and psychotic defensive reaction. If all books in the library that might be offensive to someone were destroyed, there would be few books remaining in the library. Yet no reason was given to purge the book which degraded police officers as "pigs" nor was any book ridi- culing whites suggested for suppression. It appears that Montgomery County has a biased and prejudiced director of educational media and technology on its hands. In the meantime, another federally funded organization, the Smithsonian Institution, has scoured the country to locate backwoods people, representative of American folklore to come to Wash- ington at taxpayers' expense and give a demonstration of living culture in Amer- ica. Included in the conglomeration is said to be a black Ohio Colonial blues band comparable to a New Orleans blues band. Certainly by our Maryland standards of censorship, this could be regarded as "ridicule of black people"-specially if someone white told them so. The material follows: [From the Sunday Star, June 27, 1971] SAMBO "DISMISSED" BY COUNTY SCHOOLS (By Thomas Love) "Little Black Sambo," the story of a boy with new clothes who outsmarts several tigers who want to eat him, has been ordered removed from Montgomery County schools. Following a complaint by a mother of two elementary school children, a system official has ordered all copies of the book removed from school libraries, along with film strips and records telling the story. "This decision is not to be construed as 'book burning,' but rather as book selection," Nancy C. Walker, director of the department of educational media and technology, said in a memo to all principals and librarians. In May, Barbara Smith, of 11212 Skuykill Road, Rockville, whose two children attend Rockinghorse Elementary School, complained to the school administration that the book is a "ridicule of black people." The black mother asked that the books be withdrawn from school libraries. After a month-long investigation, a committee of principals, librarians, teachers and a central office staff member recommended that her requests be granted. "'Little Black Sambo' is derogatory. It's not good literature for children." She said the book implies that "black peo- ple are preoccupied with 'fine' clothes, in- But Mr. Spragins has served th:.s comnrun- iry, to which his family came in 1320, in more ways than financial. For he has harbored a steadfast enthusiasm for its economic and cultural development. He was, for example, among the 18 men who organized the Hunts- ville Industrial Expansion Committee in 1944, and he served as its second president. He also served as president of the Chamber of Commerce in 1946. In the words of one of his frle:idls, "Bierne probably has had a hand in recruiting every new industry that has come to Euntsville in the past 25 years-except maybe the other banks." Over the years, Mr. Spragins Las garnered his share of accolades for his serslces. He re- calved the C of C Distinguished Citizens Award in 1964, and in recognition of 21 years of service as chairman of two Army advisory committees, Huntsville's and the Third Arnly's, he received the Department of the Army's highest civilian award, the Outstand- ing Civilian Service Medal. The recognition of his felfow Rotarians added sheen to the illustrious record. Well, things may have been pretty much the same at Rotary, 1920 and 1971. Bierne Spragins was there. But things surely are not the same in Iuntsville, and in no small measure because Bierne Spragins was here. 2005/08/22 CIA-RDP72-00337R000500280004-0 June 30, 1971 Apprqv tff I1"ReAJ0 CI ,5DP7Qn00~~37 0005k00280004-0 Ing Sea in about 1,000 years, at which time it would be harmless. The -very unlikely" aI- ternative would be for the radioactive water to reach the Bering Sea in two or three years at about 1,200 times safe levels and continue to be discharged for 130 years, he says. "In this unlikely event, the mixing with ocean waters in longshore currents would in- troduce an effective dilution factor," Mr. Gard says confidently. But Jerold Lowenstein, a radiation expert at the University of California Medical Cen- ter in San Francisco, scoffs at the "magic of dilution" and says low levels of radio- activity can accumulate and be recuncen- trated In the food cycle. Sen. Gravel adds, "In these days when the nation is deeply con- cerned about mercury poisoning and the market for seafood products has fallen off sharply, even the suspicion that radioactive water Is leaking to the surface could devas- tate the market for all fishery species of the North Pacific." Conservationists are especially enraged be- cause the Aleutian Islands, Including Am- chitka, are a natipnal wildlife refuge. But when be established the refuge in 1913, President Taft provided that Amchitka could be used for military purposes. Says the Au- dubon Society's Mr. Bell, "I think it is per- fectly clear that coaling stations and the like were the kind of military purposes that Presi- dent Taft considered commensurate with wildlife refuge status. It is obvious that he could not have conceivably Imagined that this might -include testing five-megaton nu- clear weapons." "NO ENVIRONMENTAL IMPACT" Carutikin, the AEC claims, will cause "no significant environmental Impact" on Am- chitka. The island Is home to the endangered sea otter, which the AEC has been helping transplant to other habitate in an effort to expand Its ranks. Perhaps as many as 20 sea otters "could suffer measurable physiologi- cal effects" from the test, the AEC says, but the overall impact will be "negligible." The ABC adds that "a few fish of conunercially Important species may be killed by the shock." As far as the Aleuts are concerned, the Aleutians should belong to them under a complex Alaskan native land claims settle- ment now pending before Congress, Iliodor Philemonof, president of the Aleut League, Which Is- threatening a lawsuit, says' the Aleuts "were and are entitled to the protec- tion of provisions of the Constitution. Prop- erty should not be taken without due proc- ess." The proposed explosion, he alleges, is another example of the white man subjecting Aleuts to "mistreatment and misfortune." But the overriding Issue In the controversy may be whether the test is actually neces- sary. Officially, the ABC hasn't disclosed the precise purpose of the $160 million project except that "the test Is considered of vital Importance to national security." in testi- mony to a Senate committee in April, an AEC official admitted Cannikin will be to test the warhead for the Spartan antiballistic missile. If that's the case, some scientists allege, then Cannikin Is pointless. Jeremy J. Stone, director of the 2,000-member Federation of American Scientists, claims Cannikin was conceived by the AEC in 1966 under Presi- dent Johnson to test the Spartan missile, an anti-Chinese missile defense system. How- ever, Mr. Stone contends, the Nixon acimut- Istration In early 1989 revised the ABM pro- gram to have the defense of Minuteman ICBM's against a Soviet threat as its primary purpose, with the defense of cities from a China attack as a supplemental program. "There now is ample reason to believe that a majority of the U.B. Senate will not support an anti-Chinese ABM," he says, adding that the Spartan missile isn't necessary in the ICBM defense system. "Basically," Mr. Stone argues, "Cannikin is a bureaucratic oversight-Tin. experiment that ha. been waiting to be canceled." The final green light for Cannikin must be flashed by President Nixon. The Anchorage Daily Times, quotes "reliable sources" in Washington Be saying the administration may cancel Oannikin hpasuse of its "potential political risk" In the wake of the recent agreement with the Soviet Union at the Strategic Arms Limitation Talks to negotiate limits on defensive ABM systems. (One AEC c:iiiclal grumbles that the Russians earlier this year set off a six-megaton test on an Arctic Island and "you didn't hear too much about that.") Like its smaller Amchitka predecessor in 1969, Cannikin is generating much inter- national ill will, espe Ialiy in Canada and Japan, two fishing nations. Patrick Moore, a Canadian conservationist, points out that Japan. Canada and even the Soviet Union (which is 800 miles from Amchitka) are cl