Office of the Historian

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

Washington, July 17, 1984

SUBJECT

  • 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.

Recommendation

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.”↩