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

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

Washington, July 26, 1976.

SUBJECT

• Covert Action Program in Italy

At TAB A CIA reports on its implementation of the limited covert propaganda and disinformation program which you authorized in connection with the recent Italian elections. The Operations Advisory Group was impressed with CIA’s accomplishments, especially since there was only a three-week period between your approval and the elections, and asked the Agency to provide a more detailed report.

A major theme of CIA’s program was to exploit Italian fears of the Communist Party. A fabricated pamphlet gained wide attention and served this aim by closely linking local communists with the Soviets. [5 lines not declassified] The pamphlet was denounced as a forgery, but most of the quotes were factual and the Italian media gave them extensive coverage, emphasizing the content rather than the question of sponsorship of the pamphlet.

Other fabricated documents were developed and employed successfully, [1½ lines not declassified]. The Agency reports that the U.S. Government and CIA were not accused of being the instigators of any of these materials. [2 lines not declassified]

At Tab B George Bush reports on his briefing of the Congress in connection with this operation, as required by Section 662 of the Foreign Assistance Act. He personally briefed members of five of the seven committees—the Senate Armed Services Committee has yet to set a briefing date, he believes, because it is considering whether it is still an “appropriate committee” under Section 662 since the Senate Select Committee on Intelligence has been created; and the House International Relations Committee has not scheduled a briefing due to Chairman Morgan’s concern over leaks of previous Bush testimony before his committee.

Bush told the five committees that you felt the situation in Italy was so serious that the United States no longer could afford to do nothing. Without exception, members of all five committees expressed reservations about the program. Their major concern was that the operations would leak, but Bush countered that risk of exposure was greater here than in Italy—especially since he had to brief seven committees of the Congress. He urged that Section 662 be repealed and reports growing support, at least in the private conversation of members of the Congress. Bush hopes that the Senate Select Committee will recommend repeal of Section 662.

I think that you will find that these reports support your decision to undertake limited covert operations in Italy, and to promote better security for reporting covert operations to the Congress. The operations successfully carried out in Italy demonstrate that they contributed to an outcome more favorable to U.S. interests than had been anticipated. It is also significant that they were conducted without any serious charge of U.S. [less than 1 line not declassified] involvement.

1. Summary: Scowcroft discussed the success of the covert action program in Italy.

   Source: National Security Council Files, Ford Intelligence Files, Italy—GRF 1974–1977. Secret; Sensitive. Sent for action. Tabs A and B are attached, but not published. A stamped notation on the memorandum indicates the President saw it, and Ford initialed the memorandum.