72. Memorandum From the Chief of the International Activities Division, Central Intelligence Agency, to Director of Central Intelligence Casey1

SUBJECT

  • Talking Points for Discussion with Secretary Shultz Re Expanded Soviet CA Program

1. Action Requested: We have been advised by Mr. Linton that the Secretary of State intends to raise the status of the expansion of the Soviet/East Europe Covert Action Program through a new Finding with you on 15 July. Attached are Talking Points for your use with the Secretary of State. (Attachment A).

2. Background: In April we forwarded a draft new Finding to expand the Soviet/East Europe CA Program (see Attachment B).2 You have [Page 245] been holding action on this Finding. As you are aware, since last fall we have been holding periodic discussions with Mark Palmer (DAS for Soviet/East European Affairs at State), Dennis Kux (DAS for Intelligence Coordination at State), and Walt Raymond of the NSC on policy coordination relative to the expanded CA program. The last such discussion was held on 11 July.3 State has consistently pressed us to get on with the expanded program on as large a scale and as soon as possible. Their view has been that this covert action pressure against the Soviets is a necessary ingredient to prod the Soviets to accept certain diplomatic initiatives.

3. We have commenced a number of new activities in the Soviet/East European target area under the authority of the 1978 Finding.4 [1 line not declassified] we have reached the point now where additional funding is necessary [less than 1 line not declassified] if the momentum in this program is to be maintained. Some contemplated new operations have not yet been undertaken, since we would only be able to mount them with new authority sought in the new Finding. In the attached Talking Points, three possible courses of action are indicated:

—Proceed with the new Finding and a related Reserve Release;

—Go forward with a Memorandum of Notification reinterpreting the 1978 Finding to provide limited expanded authority and concurrently proceed with a Reserve Release;

—Do not seek new authority at this time, and proceed only with a Reserve Release under the 1978 Finding.

[1 paragraph (5 lines) not declassified]

[name not declassified]5
[Page 246]

Attachment A

Talking Points6

SUBJECT

  • Talking Points Re Expanded Soviet/EE CA Program

1. The Soviet/EE Covert Action Program as it existed at the beginning of FY–83 consisted of [less than 1 line not declassified] operational activities budgeted at 6.5 million dollars with an additional [amount not declassified] allocated for developmental activities. [number not declassified] major new activities have been undertaken to date in FY–83, which have obligated the [amount not declassified] developmental funds. Advanced planning has gone forward for additional operations, for which specific funds have not yet been expended. [1½ lines not declassified] will be needed during the remainder of FY–83 to keep up the momentum in the expansion of the existing operations and the further development of those initiated during FY–83.

2. Assuming full-scale development of the expanded program under a new Finding (which would include clandestine radio and political action operations) [less than 1 line not declassified] is anticipated. If expansion of the program under the 1978 Finding only is approved, we will need a Reserve Release in FY–84 of [amount not declassified]. The major difference between these two programs involves the drop-out of clandestine radio broadcasting into the Soviet Union in the smaller program. A new initiative package involving the full expanded program has been included in the draft DDO FY–85 Budget in the amount of [amount not declassified] (see Attachment C).7

3. [3 lines not declassified]

4. New expanded operations already in process in FY–83:

—A new Ukrainian historical journal to appear early spring 1984;

—A subsidy to allow the continuation of the Russian edition [less than 1 line not declassified];

—A new Russian-language “newspaper” of moderate leftist viewpoint which will appear next summer;

—A Soviet Central Asian newsletter which should appear next year;

—A re-institution of support for a Hungarian newspaper and a few books;

[Page 247]

—A new Czech-language “Readers Digest”-type publication;

—A new journal appealing to dissident West European communists;

—A new journal in the three Baltic languages to appear in fall 1983.

All of these operations have policy approval in the 1978 Finding.

5. A number of other planned publishing projects authorized under the 1978 Finding are contemplated for early FY–84 if sufficient funding is available. Two projects,

—Support from Western Europe of internal peace movement in the Soviet Union and East European countries

—Establishment in exile of the [less than 1 line not declassified] and [less than 1 line not declassified] for support operations into the USSR

could most effectively be carried out under the new Finding but could be configured in a less effective form under the existing Finding if “publicity” was redefined to include “political action.”

6. If the new Finding includes clandestine radio broadcasting, we could commence operations on a limited scale six to eight months [less than 1 line not declassified]. At that time we probably could go on the air with programming in Uzbek. By the end of FY–84 we probably could also be broadcasting in the Russian language, the Baltic languages, and Ukrainian.

Attachment B

Memorandum From the Chief of the International Activities Division, Central Intelligence Agency, to Director of Central Intelligence Casey8

SUBJECT

  • Finding With Expanded Authority for Soviet/East Europe CA Program

1. ACTION REQUESTED: It is requested that you approve the attached draft Finding and Scope Paper proposing an expansion of the Agency’s Soviet/East Europe covert action program for formal external coordination and subsequent consideration by the National Security Planning Group. This draft Finding and Scope Paper have received informal approval by the Department of State.

[Page 248]

2. INITIATIVE: At the time [less than 1 line not declassified] at the NSPG last fall and approved by the President on 4 November 1982, a broader and more comprehensive Soviet/East European covert action program was discussed. It was decided to wait until the NSC completed action on NSDD–75 concerning overall policy toward the Soviet Union. NSDD–75 was signed by the President on 17 January 1983.9 This proposed Finding specifies measures to be taken by CIA to support NSDD–75.

3. POLICY: Current U.S. policy toward the Soviet Union as set forth in NSDD–75 is to involve “external resistance to Soviet imperialism (and) internal pressure on the USSR to weaken the sources of Soviet imperialism. . . . To promote . . . the process of change in the Soviet Union toward a more pluralistic policy and economic system in which the power of the privileged ruling elite is gradually reduced . . . . Expose at all available fora the double standards employed by the Soviet Union in dealing with difficulties within its own domain and the outside world. . . . To loosen Moscow’s hold on (Eastern Europe) while promoting the cause of human rights in individual East European countries.”

Current U.S. policy toward Eastern Europe is set forth in NSDD–54, dated 2 September 1982,10 which states that “the primary long-term U.S. goal in Eastern Europe is to loosen the Soviet hold on the region and, thereby, facilitate its eventual integration into the European community of nations.”

4. ISSUE FOR DECISION: The extent and characteristics of an expansion of CIA’s covert action program toward the USSR and the Bloc.

5. ACTION PROPOSAL: The existing Soviet/EE CA programs are authorized in a series of Presidential Findings: the Soviet Union and Eastern European Section of the omnibus Finding of 7 June 1978, a separate Finding of 25 September 1980, an amplification of the 1978 Finding on 7 March 1979,11 [1½ lines not declassified] these Findings [Page 249] limit Agency activities to the publication and distribution of literature and related publicity.

The new Finding will allow us to

—Initiate selected clandestine radio programming to the USSR and the Bloc, [2½ lines not declassified]

—Undertake a full range of propaganda and countermeasure operations against the Soviets at home and abroad [1 line not declassified]

—Initiate political action activities which will have impact in the USSR, [1½ lines not declassified]

We would continue and expand the existing program of literature production and distribution presently authorized to wider audiences in the USSR and the Bloc, [2 lines not declassified]. This program will be augmented under the new Finding.

6. RISKS: New operations undertaken in expansion of the existing program should not involve any particular increased risk to the U.S. Government or to the individuals concerned in the activities themselves. There has been a record of tolerance of this type of activity by allied governments in Europe, [5½ lines not declassified].

On the other hand, the Soviets will assume CIA or other Western intelligence services must be behind the initiation of clandestine radio broadcasting and any major hard-hitting program of propaganda and political action. The Soviets can be expected to take vigorous diplomatic action to influence foreign governments from whose territory clandestine broadcasts, for example, might be undertaken to close down such activity.

The Soviets may step up internal security measures and vigilance campaigns directed at new political action activities we may undertake. It is our understanding that the Department of State recognizes these risk factors, and wishes such activities undertaken, but with the understanding that as specific problems in relations with the Soviet Union may be resolved, some of these activities might be suspended in the future. [5 lines not declassified]

7. BACKGROUND: For more than the past 25 years, the Agency has engaged in a covert action program against the Soviet Union and certain countries of Eastern Europe. The aim of this program since its inception has been to provide support and encouragement to reform-minded elements in those countries as a form of political pressure on the regime. This new Finding provides a response to current policy, which requests an expansion and broadening of our current efforts. Although we will proceed as rapidly as possible to implement the new Finding (as funds and additional staff personnel are made available), time will be needed to test and build up operational mechanisms and mount the new operations in a secure and professional manner. A few of the operations could be up to full strength action by early FY–84 if [Page 250] additional funding is made available promptly, while most of the program would not be up to full strength operation before the end of FY–84 or early in FY–85.

Discussions with the NSC Staff and the Department of State indicate that there should be two major aspects to our Soviet/East Europe covert action program: the carefully modulated soft-sell appeal for moderation of the Soviet system over the long haul aimed at the Russian and East European populations; and a harder hitting program aimed more at causing basic problems for the Soviet regime, although also having an impact on populations. We have advised State and the NSC that our covert action alone will not make significant impact on Soviet leaders if not accompanied by related overt policy and diplomatic actions. The present program of print media production and distribution along with the widening of this program to additional national, ethnic, and special interest groups will accomplish State’s first objective. The institution of operations involving clandestine radio broadcasting and the operation of political actions in the Soviet Union would contribute to State’s second objective.

8. COORDINATION: The basic thrust of the Finding, the Scope Paper, and the general concept of the developmental operational program have been discussed with Mr. Walter Raymond of the NSC Staff and with Deputy Assistant Secretaries Palmer and Kux of the Department of State. Mr. Palmer has advised that the general aspects of the program have been discussed with Under Secretary Eagleburger and with the Secretary.

9. FINDING: The expanded program will require a Presidential Finding and report to the Congress pursuant to Section 662 of the Foreign Assistance Act of 1961, as amended. A draft Finding and Scope Paper are attached.12

10. FUNDING: The total estimated FY 1983 cost of the ongoing and proposed Soviet/East Europe covert action programs is $10,557,000. [7 lines not declassified]

The total estimated FY–1984 cost of the ongoing and proposed Soviet/East Europe covert action programs is $17,361,000, [4½ lines not declassified].

The total estimated FY–1985 cost of the ongoing and proposed Soviet/East Europe covert action programs is $18,750,000, [5½ lines not declassified].

[Page 251]

OPERATIONAL FUNDING SUMMARY
FOR TOTAL SOVIET/EE CA PROGRAM

[4 rows and 4 columns of table not declassified]
TOTAL 10557K 17361K 18750K

11. [14 lines not declassified]

12. STAFF POSITION: This memorandum and the attached draft Finding and Scope Paper have been coordinated with the EXDIR, OGC, the Comptroller, and the DDI. Comments from D/SOVA AND D/EURA provided by the DDI are attached.13

[name not declassified]
  1. Source: Central Intelligence Agency, Office of the Director of Central Intelligence, Job 85M00363R: Box 13, Folder: DCI Meetings with Secretary of State (Shultz), 7/15/1983. Secret; Sensitive. [text not declassified]. Forwarded through the Deputy Director of Central Intelligence and the Deputy Director for Operations.
  2. The April draft finding is attached but not printed. Also attached at Attachment B is a cover memorandum [text not declassified] to Casey explaining the need for expanding the covert action program, which is printed below. No final signed copy of the April finding has been found. [text not declassified] the Soviet/East Europe covert action program continued to operate under the 1978 finding (see footnote 4, below).
  3. No record of this meeting was found.
  4. Reference is to the June 7, 1978, omnibus Presidential finding, which is in the National Security Council, Carter Intelligence Files, Presidential Findings/MONs. The “Soviet Union and Eastern Europe” section of the omnibus finding contains the following description: “Publish and infiltrate literature into the Soviet Union and other Eastern European countries and generate publicity to support and encourage the citizens of these countries who favor liberalization and the moderation of their countries’ foreign and domestic policies.” For documentation on earlier implementation of the Soviet and East European covert action program, see Foreign Relations, 1977–1980, vol. VI, Soviet Union, Documents 162, 273, 280, 284, and 287; and Foreign Relations, 1977–1980, vol. XX, Eastern Europe, Documents 2, 3, 20, 28, and 32.
  5. Printed from a copy that bears two typed signatures. [name not declassified] typed signature appears above the [name not declassified] typed signature.
  6. Secret; Sensitive.
  7. A budget chart is attached but not printed.
  8. Secret; Sensitive. Drafted on April 19. Forwarded through the Deputy Director of Central Intelligence and the Deputy Director for Operations.
  9. See Foreign Relations, 1981–1988, vol. III, Soviet Union, January 1981–January 1983, Document 260.
  10. Documentation on this NSDD is scheduled for publication in Foreign Relations, 1981–1988, vol. X, Eastern Europe.
  11. On March 7, 1979, President Carter signed a finding to “amend” the worldwide section of the omnibus finding of June 7, 1978. In the worldwide section, “under the guidelines cleared with the Department of State,” the President directed the CIA to “task or encourage the network of agents or other contacts in foreign countries to provide non-attributable propaganda, or related actions, not amounting however to separate major initiatives, in support of following U.S. foreign policy objectives.” [text not declassified] (Central Intelligence Agency, Office of Congressional Affairs, Job 81M01032R: Subject Committee Files (1943–1980), Box 9, Folder 25: Covert Action Pres Find World-Wide)
  12. Attached but not printed.
  13. Attached but not printed.