CIA GIVES STUDENTS TITLE TO BUILDING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00001R000300390004-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: February 12, 1999
• Sequence Number: 4
• Publication Date: August 11, 1967
• Content Type: NSPR

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By ROBERT WALTERS " he agreement marks the la
Star Staff writer
;rnm
b
cy and the U.S. National Studen
Association have resolved their
six-month-long dispute over th
future of a CIA-owned Washing
ton building used by NSA as it
national headquarters.
The settlement was reached a
a secret meeting between top
officials of both organizations
held last Friday at the CIA'
headquarters in Langley, Va.
It was agreed that NSA would
take titles to tha building.
FOIAb3b
1)
NSA wanted the CIA to break
the lease and turn the building
over to the student organization,
which would then pick up the
mortgage payments. In response
to the threat of a mortgage
foreclosure, NSA threatened a
court suit which would lead to
exposure of CIA financial ar-
rangements.
Negotiations with middle-level
officials of the intelligence agen-
c were stalemated until CIA
irector r Richard Helms agreed
last week to enter the talks for
the first time.
Also present at the meeting
vere Cord Meyer Jr., in charge
.of the CIA program which cov-
ertly supplied millions of dollars
to private organizations since
he early 1930s, and Robot Kiley,
who headed the covert program
involving -, student and youth
groups.
Representing NSA were W.
Eugene Groves, its president;
Richard G. Stearns, its vice
president for international of-,
fairs; a member of its National
Supervisory Board and Washing.
ton attorney Joseph L. Rauh Jr.
Agree to Break Pact
Helms was understood to have
agreed to enter the negotiations
at Rauh's request. Under terms
of the settlement, an "ironclad"
occupancy agreement, originally;
written so that neither party)
could cancel it, will be broken;
mally release each other from
any claims or liens stemming
fr;ua the initial o c c u p a n c y
agreement and NSA will take
title to the building, subject to
the mortgage, now held by the
First National Bank of Washing-.
step in the break between t'
CIA and NSA, which is Febr -
ry confirmed a Rampart;
magazine disclosure that it lea 1
eceived extensive covert fi -
ncial support from the CI
From I P52 through 1966.
Mill,
.
luea-story brownstone building
it 2115 S St. N`W purchased two
ears ago :hy the CIA.
Following the February disclo-
ure, both organizations were
nxious to end the arrangement.
espite continuing negotiations
inca that tinge, they were dead-
ocked over the means of a'
ettlement.
The CIA wanted NSA to va-
ate the building, and at one
oint threatened to bankrupt the
"dummy" foundation which held
itle to the property, thus clear-
ing the way for a possible
foreclosure of the mortgage.
ecret 'financial supporter
ozens of other student; youtl
abor, religious and other pr
ate domestic organizations.
Although NSA severed most
is ties to the CIA in 1966 it
ho building vas uurchaseri
by the CIA for $110,003, but
currently is valued at $125.000 to
$150,000. To disguise the identity
of the real owner, the CIA
placed the building CLIC in the
name of the Independence noun
elation of Boston, one of several
zen such "dunlnhy" Younda-
t ns used by the intelligence
a eney to funnel funds to private
g o ps.
The building originally carried
$70,000 nmort age, $5,000 of
ooieb has been raid off by the
A. Last week's agreement
r. cans that NSA, after taking
t lc to the building, will assume
r sponsibility for repaying the
maining $65,000 of the mort-11
'g ge.
300 Student Groups
NSA, which represents more
tl an 300 student governments
a colleges and universities
t roughout, the country, has an:
inual budget of more thane
00,000. Payments on the build-i
ii g, including insurance and tax-I
e , are estimated at $9,000 an-'
tl ally.
NSA's current income comes
ti `111 mCn11)er dues, receipts
ti one Educational Travel, Inc., a,:
S i'.Rioiar ' travel organization,
aid from grants awarded by
overat11ent agencies and pri-
te foundations.
D u r i a g the just-concluded
66-67 fiscal year, NSA received
:?3,000 from CIA sources and
0,000 which may have originat-
at the intelligence agency.
SA officers have said those
rods are the last they will
cept from the CIA.
1 alaneas Forgiven
11
Several of the CIA's "dummy"
f undations have been socking
r payment ?ay NSA of outstand-
i g balances from grants award.
in previous years, but under
t rms of the now agreement
t ose payments will be forgiven.
Both sides were understood to
1,4 anxious for a quick settle.
cut. CIA operations have suf-
f red considerable damage as a
r suit of the NSA disclosures.
NSA officials have boon silb-
j ct to criticism for publicly
C, tacking the CIA but remaining
i the building while the CIA
p id the rent.
The settlement cane as NSA
aimed to open its annual con-
ntion, the 20th National Stu-
nt Congress, which be ;ins
nday and is expected to draw
ore than 1,500 student leaders
fpm throughout the country to
T t e University of Maryland in
llege Park.
Sanitized- Approved For Rel fie--: ?CIA-RD?P75-00
The The two organizations will for-