Foreign Relations of the United States, 1969–1976, Volume E-15, Part 2, Documents on Western Europe, 1973–1976, Second, Revised Edition

172. Memorandum From the President’s Assistant for National Security Affairs (Scowcroft) to President Ford¹

Washington, June 22, 1976.

SUBJECT

• Continuing Covert Political Action Program in Portugal

The Operations Advisory Group (OAG) has reviewed the covert political action program in Portugal which was initiated last August. Our efforts have made a positive contribution to the satisfactory outcome of the elections in Portugal, and have contributed to the developing democratic, pro-Western orientation of the government there (see Tab A).

Following consultations with Ambassador Carlucci, a proposal to reprogram the [dollar amount not declassified] that remains from the original authorization of [dollar amount not declassified] million was submitted to the OAG (Tab B). The emphasis is upon supporting labor elements of selected political parties and other labor units. These efforts will help the political parties solidify their support, but also are expected to strengthen this important element of the private sector.

DCI Bush said that his reports to the Congress on the details of our efforts generally have been received favorably. It is the opinion of the OAG (including the observers [Attorney General and OMB]) that a new Presidential Finding is not necessary, because the proposed reprogramming of remaining funds is a continuation of the program which you previously approved and for which you made the required Presidential Finding (Tab C). However, if you approve the proposed reprogramming, Mr. Bush will brief the required Congressional Committees.

OAG Recommendation

The OAG supported this proposal at its meeting on 19 June without dissent and recommends your approval.

Recommendation

That you approve the reprogramming of [dollar amount not declassified] of the covert political action program in Portugal, as proposed in the Tab B request from CIA.

1. Summary: Scowcroft requested Ford’s approval of the continuation of the covert action program in Portugal.

   Source: National Security Council Files, Ford Intelligence Files, Portugal—GRF. Top Secret; Eyes Only; Outside the System. Sent for action. All brackets are in the original except those indicating text that remains classified. Attached but not published is Tab A, an April 20 memorandum for the OAG on “Portuguese Covert Action Program—Status Report and Forecast of Continued Needs;” Tab B, a June 11 memorandum from Bush to Scowcroft; and Tab C, the August 10, 1975 Presidential Finding on Portugal. Ford initialed his approval of Scowcroft’s recommendation on June 22. The 40 Committee discussed the continuation of the Portuguese covert action program on May 20 and June 19. (Memoranda for the record, May 21 and June 19; ibid., 40 Committee/OAG Meetings, Minutes/Approvals, 1976 GRF) In a September 23 memorandum to Scowcroft, NSC staff members Samuel Hoskinson and Ratliff discussed a proposal for a further minor reallocation of previously authorized funds, including a [text not declassified] (Ibid., Portugal—GRF)