29. Memorandum From Walter Raymond of the National Security Council Staff to the President’s Assistant for National Security Affairs (McFarlane)1


  • Soviet Covert Action Program

My understanding from former colleagues is that the Soviet/East European Covert Action Program was budgeted at $8.3 million for FY 84. The program managers projected funding needs at $9.1 million for FY 85, however the “bureaucracy” (probably including John McMahon) has cut the figure to $7.6. Some of my figures may not be totally accurate but the bottom line is that there is a projected cut in this program. I do not believe that this issue has been brought to Bill Casey’s attention. I have a personal interest in this program, not only because I was responsible for it before, but also because I worked very closely with the Agency on this activity. I have been trying to generate a parallel non-covert dimension in the field of political action toward the target. I think it is vital that funding be continued. Indeed, more could and should be more meaningfully spent on this program.

I would urge you to raise this with Bill Casey privately and insure that he sees the program is continued without reductions.

Attached at Tab I is a bootleg copy of a recent letter from Secretary Shultz to Bill Casey underscoring the importance of the program and the need for it to be expanded.2 Ken3 and I and others share this view.

FYI: [2 lines not declassified] This is a second item I believe you should raise with Bill Casey in order to develop a Congressional strategy designed to reverse this HPSCI position.


That you underscore to Bill Casey your commitment that the Soviet/East Europe Convert Action Program continue at equal or greater funding levels in FY 85.4

[Page 96]

That you raise [less than 1 line not declassified] funding with Bill Casey to develop strategy for use with HPSCI.5

Ken deGraffenreid concurs.6

  1. Source: Reagan Library, System IV Intelligence Files, 1984, 400684. Secret; Eyes Only. Sent for action.
  2. Attached but not printed. The attachment is printed in Foreign Relations, 1981–1988, vol. IV, Soviet Union, January 1983–March 1985, Document 245.
  3. Ken deGraffenreid.
  4. McFarlane initialed the “Agree” option.
  5. McFarlane initialed the “Agree” option.
  6. DeGraffenreid wrote next to his concurrence, “Strongly agree with Walt that we must not let these programs be reduced.”