Foreign Relations of the United States, 1969–1976, Volume XXIX, Eastern Europe; Eastern Mediterranean, 1969–1972

53. Memorandum From the Under Secretary of State for Political Affairs (Johnson) to the 40 Committee¹

Washington, May 12, 1971.

SUBJECT

• Radio Free Europe (RFE) and Radio Liberty (RL)

Background

At its meeting of March 31, 1971,² the 40 Committee agreed that the concept of creating an independent agency or other public-private mechanism for channelling publicly appropriated funds to RFE and RL should be examined. The Committee asked for a draft Bill and on April 7, 1971, was given a draft designed to create an “American Council for Private International Communications.” The draft Bill was modelled on the “Public Broadcasting Act of 1967” (PL 90–129).³

As its meeting of April 14, 1971,⁴ the Committee approved the State/CIA recommendation that preliminary soundings of Congressional opinion be undertaken “in order to obtain a reading on whether the proposal should be presented officially to the Senate.” In light of this decision, the Department of State 1) submitted the draft Bill to OMB so that the appropriate clearance process could be undertaken and the Bill readied for prompt submission to the Senate should the Committee so decide; 2) requested and obtained from Senator Case a change in the proposed date for hearings on RFE/RL in the Senate Foreign Relations Committee⁵ from April 28 to May 24; 3) conducted explorations, jointly with CIA, of Congressional opinion in accordance with the plan presented to the Committee with its memorandum of April 7, 1971 (Tab A).

Results of Consultations

A. Prospects for Continued Funding of RFE/RL through the CIA Budget

In accordance with the expressed desire of the Committee, consultations included examination of continued covert funding of RFE/RL through the CIA budget. During the course of the Congressional soundings, the Chairmen of the Senate and House Appropriations Committees expressed strong opposition to funding the Radios through CIA beyond June 30, 1971. The Chairmen are unwilling to include an appropriation for the Radios as they maintain that this would probably jeopardize the individual appropriations not only of CIA but other Executive agencies as well. In their view, this could come about as certain Committee members apparently intend to use the Radio funding question to expose, and attempt to discredit, sensitive activities carried out by the Executive branch. It was the judgment of the CIA and State Department offices for Congressional Relations that Senator Ellender and Representative Mahon would “under no circumstances” ask their Committees to include funds for the Radios in the CIA budget for FY 1972.

B. Prospects for Interim Funding of RFE/RL through the CIA Budget until a New Mechanism is Established

In view of the attitude of the Chairmen of the Appropriations Committees with regard to continuation of the status quo, their views were sought on the feasibility of funding the Radios through the CIA budget on the basis of a continuing resolution until such time as a new, public mechanism had been authorized and granted funds by Congress. The Chairmen somewhat reluctantly indicated this could be done for a few months—perhaps until the August recess, by which time the DOD FY 1972 budget is expected to be approved. This solution would provide funds for an additional 30 to 60 days, but no longer. Apart from the fact that the two Chairmen appear reluctant to use a continuing resolution, such a course is not deemed advisable for two reasons:

1. If there has been a hearing on CIAʼs “black budget” prior to June 30, as is expected, and if CIA has been formally advised that its FY 1972 budget cannot include funds for the Radios, the legality of using funds for this purpose under a continuing resolution is open to question.

2. Even if interim funds for the Radios could be secured on the basis of a continuing resolution for the DOD budget, a budgetary hiatus would occur if the Department of Defense budget is appropriated prior to action on appropriations for the proposed Council.

CIA has explored alternative methods of securing funds for the Radios to cover the period until an appropriation is made under the terms of the draft Bill creating the American Council for Private International Communications, Incorporated. It is not feasible to provide money from CIA reserves since the constraints imposed by the Appropriations Committee Chairmen in refusing covert appropriations in FY 1972 would be equally applicable to the use of reserve funds. Moreover, current requirements against the reserve funds are of such a priority nature that CIA cannot allow their use for the Radios unless assured that they would be replenished in full. CIA has also inquired of OMB whether transfer in FY 1971 of the required funds (CIA programmed $36.2 million for the Radios in FY 1972) from the Department of Defense to CIA is feasible. OMB advises that such DOD funds are not available unless higher authority orders them released.OMB also feels that such funds, if available, could not be used for this purpose without Congressional concurrence.

As of now, therefore, no satisfactory method for interim funding has been developed, and there is a real possibility that the Radios will be without financial support at the beginning of FY 1972. Should this occur, liquidation procedures would have to be promptly initiated, and it is estimated that these costs are likely to exceed the combined annual budgets of the two organizations. However, in the above situation, funds are not available even for this purpose.

In light of these circumstances, it would appear that the only conceivable method of ensuring the orderly funding of the Radios until they come under the supervision of the proposed Council is to fund them for FY 1972 out of overall year-end FY 1971 savings. This would be tantamount to channelling unused, publicly appropriated, non-CIA funds to a use which would, for the interim, still be under CIA control (although the May 24 Senate Hearings will have, by the end of FY 1971, yielded a clear government acknowledgment that it funds the Radios).

C. Prospects for passage in Senate and House of the Authorization Bill in its present form

OMB anticipates clearing the draft Bill with minor technical changes within the next few days during which time it will discuss Treasuryʼs reluctance to be used as a funding channel for the Council. As the result of our review of the concepts in the draft Bill with Senator Case, he has indicated general agreement with it and expressed a willingness to act as its sponsor in its present form possibly with some modifications regarding the appointment of members of the Board of Directors. As a result, we believe the Billʼs prospects in the Senate Foreign Relations Committee are good. In addition, Congressman Reid has also indicated his support, which should aid our testimony before the House Foreign Affairs Committee whose chairman, Representative Morgan, has also been briefed on the draft Bill. Other Senators and Congressmen, during the consultations, initially questioned the need for a new government entity in lieu of funding the Radios through State or USIA, but subsequently agreed with the approach in the draft Bill. Presently there is no known opposition.

We believe that there are reasonably good prospects for passage of an authorizing Bill of the type envisaged (Tab B)⁶ in the Senate and House with the support of a liberal-conservative coalition with Case and Reid heading up the liberal side.

D. Prospects of Appropriations being Approved once Authorizing Bill is passed

Chairman Ellender, after some discussion, indicated that he would not actively support the Bill but that he would not obstruct it. He indicated his strong intention of having his appropriations bills pass the Senate prior to the August recess, although Chairman Mahon had indicated his belief that the Defense Appropriations Bill will carry over in the House until after the August recess. In other consultations, questions were raised concerning the Radiosʼ funding levels in view of the dollar crisis and moves to retrench on our foreign expenditures.

Conclusions

The exploratory consultations have, unfortunately, produced more clarity on the impossibility of maintaining the present method of funding RFE/RL than on the possibility of funding the Radios reliably through a new publicly funded entity. Furthermore, they have revealed that the question of creating a new entity and obtaining funds for it is urgent in view of the strong reluctance of the Appropriations Committee chairmen to continue the present funding system into FY 1972.

The limited explorations of Congressional views suggest that there are “reasonably good prospects” of getting adequate support for an authorizing bill establishing an American Council on Private International Communications. However, in view of the current inclination in Congress to cut foreign expenditures, it will take a strong effort by the Administration if funding for the Radios is to be maintained at the present level.

It is therefore concluded that virtually the only choice open to the Administration on the problem of funding RFE/RL is to proceed with the draft Bill. It is further concluded that personal involvement by the President will be required in order to get across to key Congressional leaders 1) the need to give the Bill priority in order to get it considered prior to or early in FY 1972; 2) the importance of continuing to fund the Radios at the present level.

Recommendations

1. The 40 Committee is asked to recommend to the President that he approve the draft Bill (Tab B) for submission to Congress prior to the Senate Foreign Relations Committee hearings on the Radios now scheduled for May 24.

2. The 40 Committee is asked to recommend that the President, during the period prior to the Senate hearings, emphasize to the Congressional leadership the importance of expediting this legislation and of continuing the present level of funding of the Radios.

3. The 40 Committee is asked to recommend to the President that, until a new entity can be created and granted appropriations to fund the Radios, he authorize, with the concurrence of Congressional leaders: (a) the funding of the Radios at the present level out of overall FY 1971 US budgetary savings since there are no FY 1972 funds available to CIA for this purpose; and (b) the recognition of this interim funding by the State Department press officer, or other appropriate officers, if asked.

4. The 40 Committee is asked to approve the continuation of consultation by State and CIA with key members of Congress (Tab C)⁷ to obtain additional support on a broader basis prior to the Senate Foreign Relations Committee Hearings scheduled for May 24. Some of the present members of RFE/RL Boards (Tab D),⁸ might be used to contact members of Congress with whom they have personal contact. Outstanding public witnesses should be contacted for the hearings.

5. The 40 Committee is asked to recommend that the Treasury, as a department which disburses funds to a wide variety of independent entities and is not involved in the direct conduct of diplomacy or programs in the Communist countries, be designated as the channel for disbursing publicly appropriated funds to the new entity to be created to fund the Radios. (A copy of the letter from Treasury to OMB giving its position on this is at Tab E.)

6. The attention of the 40 Committee is invited to the subject of recommending a Chairman of the Board of the American Council for Private International Communications, Incorporated in order to provide during Congressional consultations an idea as to the caliber of the Board envisaged for the Council. Names such as those of Dr. Milton Eisenhower, Ambassador Robert D. Murphy, Ambassador Llewellyn E. Thompson, and Governor William Scranton, suggest themselves.⁹

U.A.J. ¹⁰

1. Source: Department of State, INR/IL Historical Files, 40 Committee Files. Secret; Exdis. Tabs A–E to this memorandum are attached but not printed.
2. See Document 51.
3. 81 Stat. 364, approved November 4, 1967.
4. The minutes are in the Department of State, INR/IL Historical Files, 40 Committee Files.
5. See Public Financing of Radio Free Europe and Radio Liberty. Hearings Before the Committee on Foreign Relations, United States Senate, 92nd Congress, 1st Session (Washington, DC: Government Printing Office, 1971).
6. Attached at Tab B but not printed is the administrationʼs draft bill, which provided for the establishment of a non-profit corporation, the “American Council for Private International Communications, Inc.,” that would receive funding from Congress and private sources to provide for the operation of RFE and RL.
7. Attached at Tab C but not printed is a list of key Congressmen and Senators on the Foreign Relations and Appropriations Committees of the House and Senate.
8. Attached at Tab D but not printed is a list of board members of Radio Free Europe and Radio Liberty.
9. The minutes of the 40 Committee meeting of May 14 reported: “The State Department paper dated 12 May 1971 reported on results of the preliminary Congressional soundings on the legislative proposal to create an American Council for Private International Communications, Inc., for channeling publicly appropriated funds to support RFE and RL. The Committee granted approval for the formal presentation of the draft bill to Sen. Case and Congressman Reid as Administration-supported legislation. The Chairman and Mr. Schlesinger agreed to direct the Treasury to assume the responsibility of acting as the direct disbursing agent for funding to the proposed Council, which will in turn fund RFE and RL.” (Department of State, INR/IL Historical Files, 40 Committee Files)
10. Initialed by Coerr for Johnson.