Financing Propaganda
In 1983, Casey and Raymond focused on creating a funding mechanism to support Freedom House and other outside groups that would engage in propaganda and political action that the CIA had historically organized and paid for covertly. The idea emerged for a congressionally funded entity that would serve as a conduit for this money.
But Casey recognized the need to hide the strings being pulled by the CIA. "Obviously we here [at CIA] should not get out front in the development of such an organization, nor should we appear to be a sponsor or advocate," Casey said in one undated letter to then-White House counselor Edwin Meese III -- as Casey urged creation of a "National Endowment."
The National Endowment for Democracy took shape in late 1983 as Congress decided to also set aside pots of money -- within NED -- for the Republican and Democratic parties and for organized labor, creating enough bipartisan largesse that passage was assured.
But some in Congress thought it was important to wall the NED off from any association with the CIA, so a provision was included to bar the participation of any current or former CIA official, according to one congressional aide who helped write the legislation.
This aide told me that one night late in the 1983 session, as the bill was about to go to the House floor, the CIA's congressional liaison came pounding at the door to the office of Rep. Dante Fascell, a senior Democrat on the House Foreign Affairs Committee and a chief sponsor of the bill.
The frantic CIA official conveyed a single message from CIA Director Casey: the language barring the participation of CIA personnel must be struck from the bill, the aide recalled, noting that Fascell consented to the demand, not fully recognizing its significance.
What the documents at the Reagan library now make clear is that lifting the ban enabled Raymond and Casey to stay active shaping the decisions of the new funding mechanism.
The aide said Fascell also consented to the Reagan administration's choice of Carl Gershman to head the National Endowment for Democracy, again not recognizing how this decision would affect the future of the new entity and American foreign policy.
Gershman, who had followed the classic neoconservative path from youthful socialism to fierce anticommunism, became NED's first (and, to this day, only) president. Though NED is technically independent of U.S. foreign policy, Gershman in the early years coordinated decisions on grants with Raymond at the NSC.
For instance, on Jan. 2, 1985, Raymond wrote to two NSC Asian experts that...
"Carl Gershman has called concerning a possible grant to the Chinese Alliance for Democracy (CAD). I am concerned about the political dimension to this request. We should not find ourselves in a position where we have to respond to pressure, but this request poses a real problem to Carl."Senator [Orrin] Hatch, as you know, is a member of the board. Secondly, NED has already given a major grant for a related Chinese program."
Besides clearing aside political obstacles for Gershman, Raymond also urged NED to give money to Freedom House in a June 21, 1985 letter obtained by Professor John Nichols of Pennsylvania State University.
A Tag Team
From the start, NED became a major benefactor for Freedom House, beginning with a $200,000 grant in 1984 to build "a network of democratic opinion-makers." In NED's first four years, from 1984 and 1988, it lavished $2.6 million on Freedom House, accounting for more than one-third of its total income, according to a study by the liberal Council on Hemispheric Affairs that was entitled "Freedom House: Portrait of a Pass-Through."
Over the ensuing three decades, Freedom House has become almost an NED subsidiary, often joining NED in holding policy conferences and issuing position papers; both organizations pushing primarily a neoconservative agenda, challenging countries deemed insufficiently "free," including Syria, Ukraine (in 2014) and Russia.
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