5- - - m a a 1 MEMORANDUM FOR Directdn SUBJECT Reduest for Additional Funds for g MenCurib 1 In September 1971 the 40 Committee was presented with two options with regard being subjected to heavy pressure by the Allende government - One' option would have withheld any financi 1 support-and allowed _ lLMercurio'to go out of business whi the other-involved financing the paper in the amount an initial commitment of On 13'September $700_000 was authorized fer l_Nercurio - - This memorandum to the 40 Committee requests that an' additibnal $965 000 be made available to g continued existence is deemed leading up to he' arch Congressional elections DID Commitments won be'queaonly on the basis 0 'documented need and with the endorsement of the Ambassador It is considered that the _funds'reqnested in this memorandum can-be inserted securely using the same techniques previously employed f Declassi ed am Appmvedfochleas - - July 2000 $4 - 3 In terms of-public impact and political effectiveness considered by both_the-Allende-government and as the most effective_anti-A11ende media outlet in the country The Ambassador -Station believe that its continued publication is vital to the Opposition causem - - El Mercurio will continue to be vulnerable to various forms-of government harassment _including physical'attack ' If Allende is determined to silence El Mercurio he will probably -find the means with-some semblance of'legality regardless of the amount of financial support the U Government may provide 9 Under these circumStahces a decision th regard to further financial support must be based not on financial conSiderations but on a va1ue judgment of'the importance of attempting-to ensure the paper's continued existence for political'purposes The proposal has the-concurrence of the Assistant Secretary of State for Inter-American Affairs Mr Charles A Meyer _ Ambassador Nathaniel Davis has also endorsed this Proposal - 14- - 7 - Theodore G _Shaei ley chief Western emisphere Division CONCUR 1 Release of the attaohed memorandum to the members of - the 40 COmmittee is authorized l S Rte 14rd Deputy Director for Plans Director of Central Intelligence 0 pw m Date - Date Executive Director Comptroller 5541                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu