REQUEST THAT YOU SUPPORT STATE S EFFORTS TO PRY $4.1 MILLION OUT OF OMB FOR THE ASIA FOUNDATION IN FY 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84M00395R000600220035-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 21, 2016
• Document Release Date: June 5, 2008
• Sequence Number: 35
• Publication Date: March 15, 1982
• Content Type: MEMO

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.ti SECRET
THE DIRECTOR OF CENTRAL INTELLIGENCE
National Intelligence Council
MEMORANDUM FOR: Director of Central Intelligence
Request that you support State's efforts to
pry $4.1 million out of OMB for The Asia
Foundation in FY 1983
THROUGH: Chairman, National Intelligence Council
Chief, East Asia Division, DDO
FROM: David Gries
National Intelligence Officer for East Asia
1 -A5 you know, The Asia Foundation,)
became independent during the 1970s and turned to AID for
funding. In 1980 Congress recommended that The Asia Foundation be accom-
modated in State's budget, but the recommendation was never implemented.
State is now trying to include The Asia Foundation in its FY 1983 budget, but
has been informed by OMB that the request for $4.1 million can only be accom-
modated in State's budget if the budget is reduced in some other category by a
like amount. Attached is a copy of Deputy Secretary Stoessel's letter to
Mr. Stockman opposing OMB's position and requesting an amendment to the State
budget in the amount of $4.1 million. State, through John Holdridge, has
asked for your support in convincing Stockman to change his mind.
2. I recommend that you inform OMB that you agree with Stoessel's
position on grounds that The Asia Foundation merits funding at least at the
$4.1 million level. It is unreasonable to ask State to absorb this amount,
and it can be further assumed that if pressed State will cut the $4.1 million
rather than absorb all of it. If you wish me to prepare a letter for your
signature to Stockman, please let me know.
State Dept. review completed.
All portions Secret.
DDI-2135-82
15 March 1982
DERIV CL BY SIGNER
REVW ON 15 MAR 1988
SECRET
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SECRET
David Gries
Attachment:
As stated
2
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:_ - S/S 8205561 _ _`
THE DEPUT' SECRETARY OF STATE S
S/S 8205559.- -
March 11, 1982
Dear 'Mr. Stockman:
s decided that the State Departme
TO:
oPIES-
~
1980 the Congres
In
ce in which to provide for fundin
l
a
suitable p
budget was a The Asia Foundation (TAF). It has also made its position clear
that TAP should be treated as a separate entity and not have to
rations and programs of the State
r funds with ope
:,A compete fo 'A Department. TAP has not, however, been included in State's
budget requests, and in 1981 and 1982 Congress took the
'B initiative to include funds for TAP. In the 1982 budget report----=-
^A. And TAP trustees were requested ,to provide _
a report to the %.vnys v.. .........--- --- - wa-
which included obtaining the
/COMP
sive review
t
,
en
funded An ex
. >/-S:DIR opinion of our Ambassadors in countries where TAP has programs,
tment of State to the conclusion that TAP makes an
led the Depar
ZF(7Agl _ . __ to u_S- foreign affairs objectives and
- - -
funding was the most logical appr
organization, not an operation of the Department of State.
This position also has the advantage of coinciding with
Congressional desires. Accordingly Judge Clark, then Deputy
mof-hnA of financing TAP on December
that TAP has functions whicn couiu nv4 ww r-----...__ _, _
- organization. It was found also that separate and additional--
oach since TAP is a separate
amendment to add to the PY1983`State req~? ?r~t,o~
decision. ?xne terv< a" ----- ---
clearance together with a request for approval for a budget
uest of $4 1 million
,.
-The Honorable
David Stockman,
State funding, there was agreem
be lowered and the State ceiling would be raised by-the amount
T
=- budget allowance* P
proviso on principle. At the time of shifting from AID to
ent that the AID ceiling would-------
LOr LAC Aaa.. ?v........-.- ^-- -
As you are aware, to implement
oJudgeeClark's decision, Mr.
Eennedy requested funding 14 M.
Schneider's reply was that $4.1 million could be included for
thby by e Department's 1983
bud ?to long ittaeoutlaydreductionsoffset
budget authority and Y
h De artment of State objects to this
_ p],=eCLVS, _ -
= Office of Management and Budget._
C~l
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 of funding for TAP .which was transferred from one budget to the
other. In preparing the 1981 budget submission, that agreement
was not respected by OMB, thereby preventing an orderly
ress has objected
Con
i
- 2 -
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g
ng.
establishment of a base for TAF fund
to this procedural forrTAP funding-for as it thews
b
by twice adding funds
Executive Branch.
only 14.1 million for TAP _for 1983, the
i
n
n real -
-same nominal figure as in 1981 and 1902 --
amount some ;below stin cutt=ngfunding
administrative costs.part
reflecting TAP succes
Our concern about handling TAP in a fashion which
antagonizes the Congress goes well beyond the future of TAP
itself. Other programs of much ctsaof the security nand
h as aspe
:_-_=== importance than Ur suc
ld suffer if the handling of TAP -
economic assistance budgets sou
k members of the Congress. In sum,
funding were to annoy eY
izin suppoit for TAP may entail
r 9
further problems in regu a
such great costs for many of the President's programs that the
small amount for The Asia Foundation would be insignificant in
i` == comparison.
We would appreciate your addressing the report and request _77
for budget amendment
s begin in mid-larch.
i
'
ng
s budget. hear
State
Sincerely,
Walter J. Stoessel
I
R
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. UNCLASSIFIED
DEPARTMENT OF STATE
MEMORANDUM FOR MR. WILLIAM P. CLARE
THE WHITE SOUSE
Subject: The Asia Foundation: The Repoit to Congress
In its report on the Relations Committee
for fiscal year 1982 the Senate Foreign Rel
requested. a- cRJt report from the Department of State and the
fut%re of
Trustees of `~e.-As-i-a~-Foundattono ats, the
TAP. On December 1,?as Deputy Secretary of St
the continuation of USG support for The Asia foundation .tbroMgh.
a separate authorization in the Department's budget earmarked.
for grant to TAP. Thi.e_ recommendation specified that funds so
authorized would be separate from and in addition to other --
and is ropost,
was future
prepared years.
funds for the a approvea`'option and
incorporating ing,
In implementation of the above decision, the Department;
requested 0MB on December 14 to add a budget request of *41,1
million for TAP as a separate appropriation for PY 1983. trl
December 30, 0MB responded requiring offsetting reductions in
other areas of the State budget, in effect rejecting the
position you approved on separate funding. Given this
position, it seems clear that OMB's initial inclination 'will be
not to approve the report to the Congress nor the Depart ends
request*f or a budget amendment for 1983 funds for RAP.
are three basic issues: advisability of funding The Asia
the danger& of,
conention.etween method
_
contention b
A. The Asia Foundation makaa very impo rtant and cost:
effective contribution to the State pa
Ambassadors in Asian countries where TAP has programs have-
UNCLASSIFIED
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Cam. ?
sent to 0MB for clearance.
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UNCLASSIFIED
underlined the high regard they' have for TAP's activitAbsr ','NAY
is able to implement many programs which the U$G finds highly
desirable but could not have performed by any goverment
agency. TAP'a contributions are very large in comparison 41ith
the modest funds provided by the USG, which are supplementitd by
private contributions. This view of TAF, held by Ambassadc-ra
in the field and officials in Stare who4have.bad the most
knowledge of TAP's work, has not been opinly disputed.
Congressmen who have examined TAP share this opinion ofTAK's
contribution.
B. ? -TAF . 4 aa..sep ate organization and not an activity of
the D partm t of State. While its acti-vities very muck, ? Cam.
support the political objectives of the Department, they a;ce in
areas such as public affairs, development and cultural
exchanges which are not normally functions of the Departmel~t of
State. It is therefore' logical that TAP should be a separ;~te
item in the State budget with funds in addition to those
provided for State's own:;Qperations. This is what was don$ in
1981 and 1982 when the funds were added to the State budget-by
Congressional initiatives. Congress, State and TAP trustsis
have this view of TAE funding, but 0MB, in the name of budget
discipline, wishes to have TAP compete against State operations
and programs as a neid item.
C. Congress has strongly backed funding for TAP and has
insisted on separate and additional funding. Congresanan-
Zablocki wrote: 'It has been brought to my attention that
decisions are currently pending which will affect the future of
The Asia Foundation. The purpose of this letter i&?to--espeeta,
in the strongest terms possible, my unqualified support for the
continued funding of this modest program which is of
inestimable value in promoting U.S. foreign policy objectives.'
(May 2, 1980 letter to then President Carter)
Senator Percy wrote: 'It is my belief -- and I know-that
others in Congress share this view -- that The Asia Ponndakion
was intended to be treated as a separate entity and not have-to
UNCLASSIFIED
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UNCLASSIFIED
3 -
It e
compete with other programs in the State Department for
funding. I would, therefore, strongly urge your efforts to
ensure that the Foundation is included in the PY 1982 budget,
submission.' (Excerpt from a November 1?,. 1980 letter to then
Secretary of State Muskie)
If OMB's position prevails, this will be the third fiac4}1
year in a row that we have failed to respond to very clear
Congressional1,4nt.ent. Continuing inability of the Executiveo
* Branch`~Lo be%Pesponsive to Congressional?-desires on this #a;Irly
minor matter in which only a modest sum is involved can only
cause an unnecessary Tritation in our relations with the
Congress. We do not expect Congress to accept.readily a rej t
which points out the high opinion of TAP's eontributions- --be;Ld
by Ambassadors and other officials, but concludes .that TAP
should not be-funded. We are forwarding hereth a copy of the report for your
information. I would appreciate your informing OMB that yol;
endorse its conclusion that TAF makes an important contribution
to the conduct of US foreign relations and its recommendati;pn
to the Congress thatrTAP be supported by separate and
additional funding ins the State budget.
L. Paul Bremer III
Executive Secretary
Attachment: Joint Report to the Congress on Asia Foundation by
the Department of State and the Trustees of
the Asia Foundation. Letter to be signed by
the Assistant Secretary of State for Congressional
Relations
UNCLASSIFIED
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