<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->132. Memorandum From the Central Intelligence Agency to the 303 Committee/1/
/1/Source: Department of State, INR/IL Historical Files, Minutes of 303 Committee, 6/22/66. Secret; Eyes Only.
Washington, June 22, 1966.
SUBJECT
The Asia Foundation: Proposed Improvements in Funding Procedures
1. Summary
<b>The Asia Foundation (TAF), a Central Intelligence Agency proprietary, was established in 1954 to undertake cultural and educational activities on behalf of the United States Government in ways not open to official U.S. agencies. </b>Over the past twelve years TAF has accomplished its assigned mission with increasing effectiveness and has, in the process, become a widely-known institution, in Asia and the United States. TAF is now experiencing inquiries regarding its sources of funds and connections with the U.S. Government from the aggressive leftist publication, Ramparts./2/ It is conceivable that such inquiries will lead to a published revelation of TAF's CIA connection. In the present climate of national dissent and in the wake of recent critical press comment on CIA involvement with American universities, we feel a public allegation that CIA funds and controls TAF would be seized upon, with or without proof, and magnified beyond its actual significance to embarrass the Administration and U.S. national interests at home and abroad. Some immediate defensive and remedial measures are required [2-1/2 lines of source text not declassified].
..
"The Asia Foundation was founded in 1954 and throughout the 1960s had an annual budget of about $8 million. This money was used to support Asian schools and libraries, give travel grants to Asians for international conferences, and in support of expanded Pacific trade. In 1967 it was revealed that they were receiving CIA funds. Victor Marchetti, once an executive assistant to the CIA's deputy director, is less delicate -- he says Asia Foundation was established by the CIA and until 1967 was heavily subsidized by them, even though some of their activities were legitimate.
<b>These days the National Endowment for Democracy model is preferred over those old, risky, secret CIA conduits, so in 1984 the Asia Foundation Act provided for funds from the Department of State. </b>In 1987 the Foundation received $10 million from State and another $3.7 million from AID, in addition to private support (88 percent of which was in the form of donated books) and matching Asian contributions. We wonder if Asia Foundation is really out of the U.S. intelligence loop after all. "
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/1/Source: Department of State, INR/IL Historical Files, Minutes of 303 Committee, 6/22/66. Secret; Eyes Only.
Washington, June 22, 1966.
SUBJECT
The Asia Foundation: Proposed Improvements in Funding Procedures
1. Summary
<b>The Asia Foundation (TAF), a Central Intelligence Agency proprietary, was established in 1954 to undertake cultural and educational activities on behalf of the United States Government in ways not open to official U.S. agencies. </b>Over the past twelve years TAF has accomplished its assigned mission with increasing effectiveness and has, in the process, become a widely-known institution, in Asia and the United States. TAF is now experiencing inquiries regarding its sources of funds and connections with the U.S. Government from the aggressive leftist publication, Ramparts./2/ It is conceivable that such inquiries will lead to a published revelation of TAF's CIA connection. In the present climate of national dissent and in the wake of recent critical press comment on CIA involvement with American universities, we feel a public allegation that CIA funds and controls TAF would be seized upon, with or without proof, and magnified beyond its actual significance to embarrass the Administration and U.S. national interests at home and abroad. Some immediate defensive and remedial measures are required [2-1/2 lines of source text not declassified].
..
"The Asia Foundation was founded in 1954 and throughout the 1960s had an annual budget of about $8 million. This money was used to support Asian schools and libraries, give travel grants to Asians for international conferences, and in support of expanded Pacific trade. In 1967 it was revealed that they were receiving CIA funds. Victor Marchetti, once an executive assistant to the CIA's deputy director, is less delicate -- he says Asia Foundation was established by the CIA and until 1967 was heavily subsidized by them, even though some of their activities were legitimate.
<b>These days the National Endowment for Democracy model is preferred over those old, risky, secret CIA conduits, so in 1984 the Asia Foundation Act provided for funds from the Department of State. </b>In 1987 the Foundation received $10 million from State and another $3.7 million from AID, in addition to private support (88 percent of which was in the form of donated books) and matching Asian contributions. We wonder if Asia Foundation is really out of the U.S. intelligence loop after all. "
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