These recently discovered documents buttress previously disclosed evidence that Reagan’s CIA Director William J. Casey played a key behind-the-scenes role in pushing this political action initiative, which recruited well-heeled private-sector conservatives to subsidize the secretive government operations.

The documents show that Casey used a senior CIA propaganda and disinformation specialist named Walter Raymond Jr., who was placed inside the National Security Council in 1982, to oversee the project and to circumvent legal prohibitions against the CIA engaging in propaganda that might influence U.S. public opinion or politics.

Though Raymond formally quit the CIA after going to the NSC, documents from Raymond’s personal NSC files reveal that he often passed on recommendations regarding the propaganda initiative after meetings at CIA headquarters in Langley, Virginia, or after conversations with Casey himself.

In one Nov. 4, 1982, “secret” memo, Raymond described Casey reaching out to right-wing mogul Richard Mellon Scaife, who was already working with other conservative foundation executives to fund right-wing publications, think tanks and activist groups seeking to shift U.S. politics to the Right.

Raymond told then NSC advisor William P. Clark that “Bill Casey asked me to pass on the following thought concerning your [scheduled] meeting with Dick Scaife, Dave Abshire [then a member of the President’s Foreign Intelligence Advisory Board], and Co.

“Casey had lunch with them today and discussed the need to get moving in the general area of supporting our friends around the world.”

Besides a desire to “invigorate international media programs,” Casey wanted to help U.S.-based organizations, such as Freedom House, that could influence American attitudes about foreign challenges, Raymond said.

“The DCI [Director of Central Intelligence] is also concerned about strengthening public information organizations in the United States such as Freedom House,” Raymond told Clark.  “To do this we have identified three overt tracks:

“--enhanced federal funding;

“--the Democracy Project study (although publicly funded this will be independently managed);

“--private funds.”

“A critical piece of the puzzle is a serious effort to raise private funds to generate momentum. Casey’s talk with Scaife and Co. suggests they would be very willing to cooperate.”

(In the following years, Freedom House emerged as a major critic of Nicaragua’s leftist Sandinista government, which Reagan and Casey were seeking to overthrow by covertly supporting contra rebels.)

Returning from Langley

A Dec. 2 note addressed to “Bud,” apparently senior NSC official Robert “Bud” McFarlane, described a request from Raymond for a brief meeting.  “When he [Raymond] returned from Langley, he had a proposed draft letter … re $100 M democ[racy]  proj[ect],” the note said.

While Raymond passed on Casey's instructions, the CIA director told White House officials to play down or conceal the CIA’s role.

“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, urging creation of a “National Endowment” that would support “free institutions throughout the world.”

On Jan. 21, 1983, Raymond updated Clark about the project, which also was reaching out to representatives from other conservative foundations, including Les Lenkowsky of Smith-Richardson, Michael Joyce of Olin and Dan McMichael of Mellon-Scaife.

“This is designed to develop a broader group of people who will support parallel initiatives consistent with Administration needs and desires,” Raymond wrote.

In the late 1970s and through the 1980s, those and other conservative foundations poured millions of dollars into right-wing think tanks, media outlets and anti-journalism attack groups that targeted American reporters who challenged the Reagan administration’s propaganda.

The early planning papers also indicated a desire to use this relatively overt system to funnel money to pro-U.S. trade unions in Asia, Africa and Latin America in support of a variety of political operations, including setting up television stations and funding print publications.

Some examples were $150,000 to a Bolivian trade union; $50,000 to Peru as a “direct counter to Soviet funding”; $50,000 to Grenada “to the only organized opposition to the Marxist government of Maurice Bishop (The Seaman and Waterfront Workers Union). A supplemental to support free TV activity outside Grenada”; $750,000 to Nicaragua “to support an array of independent trade union activity, agricultural cooperatives”; and $500,000 for “Central America labor publishing house and distribution center for printed materials – TV materials, cooperatives, land reform, etc. – to counter Marxist literature.”

The document’s reference to money being spent to counter Bishop’s government in Grenada adds weight to long-held suspicions that the Reagan administration engaged in propaganda and destabilization campaigns against Bishop, who was ousted by internal rivals and killed in October 1983, setting the stage for the U.S. invasion of the tiny Caribbean island.

The invasion of Grenada, though condemned by much of the world as an act of U.S. aggression, proved popular in the United States, an important step in readying the American people for larger military adventures ahead.

Taking Shape

Eventually, Casey’s concept of a global initiative led to the founding of the National Endowment for Democracy in 1983 ostensibly for the purpose of promoting foreign democratic institutions. But the NED also created a cover for the United States to funnel money to pro-U.S. groups in hostile countries. And it subsidized Washington’s growing community of neoconservatives who wrote op-ed articles in leading newspapers and went on TV news shows advocating an aggressive U.S. foreign policy.

Since 1983, NED has been involved in numerous controversies, including allegations that it helped buy the Nicaraguan election in 1990 by spending some $9 million, including $4 million poured into the campaign of U.S.-backed candidate Violeta Chamorro.

NED’s hand also has been detected in “velvet revolutions” staged in Ukraine, Georgia and other eastern European nations. NED has been active, too, in Iran, fueling government suspicions there that its opposition, which took to the streets after last June’s presidential election, represented another U.S.-backed scheme to achieve regime change.

Though many of Raymond’s documents at Reagan’s Library in Simi Valley, California, remain secret, the recently discovered material – and some of the previously released documents – offer a panorama of how the administration’s perception management campaigns evolved, from the early days of Casey prodding the process forward to later years when Raymond’s apparatus grew increasingly powerful and even paranoid.

According to a secret action proposal that Raymond submitted on Dec. 20, 1984, to then national security adviser McFarlane, Raymond wanted an even greater commitment of manpower.

“I have attempted to proceed forward with a whole range of political and information activities,” Raymond wrote. “There are a raft of ties to private organizations which are working in tandem with the government in a number of areas ranging from the American Security Council to the Atlantic Council, to the nascent idea of a ‘Peace Institute.’"

Among the examples of his "specific activities," Raymond listed “significant expansion of our ability to utilize book publication and distribution as a public diplomacy tool. (This is based on an integrated public-private strategy). … The development of an active PSYOP strategy. … Meetings (ad hoc) with selected CIA operational people to coordinate and clarify lines between overt/covert political operations on key areas. Examples: Afghanistan, Central America, USSR-EE [Eastern Europe] and Grenada.”

‘Active Measures’

Another part of Raymond’s domain was “the Soviet Political Action Working Group.” This group discussed what it regarded as “Soviet active measures” and worked on “themes” that soon resonated through Washington, such as the argument regarding “moral equivalents.”

Raymond reported that the “moral equivalents” theme was discussed at the working group’s Dec. 15, 1983, meeting. The idea of “moral equivalents” involved U.S. government officials upbraiding journalists and opinion leaders who tried to apply common moral standards to pro- and anti-U.S. groups.

Reagan administration officials would insist that human rights crimes by the pro-U.S. side of a conflict should not be criticized as severely as similar crimes by the anti-U.S. side because that would apply a “false moral equivalence,” suggesting that the United States was no better than its enemies. To take such a position was regarded as unpatriotic or disloyal.

Along those lines, one of Raymond’s sub-groups, “the Active Measures Working Group,” met “to develop an action plan to turn Soviet active measures back onto the Soviets, i.e. take the offensive.”

Attendees included Raymond and another CIA operations veteran, Ray Warren, a Casey favorite who was placed inside the Pentagon; Herb Romerstein, a former investigator for the House Committee on Un-American Activities; and Robert Kagan, a prominent neoconservative who was an aide to Elliott Abrams at the State Department and later led the Office of Public Diplomacy on Latin America.

The Active Measures Working Group brought in from the Office of the Secretary of Defense and U.S. Special Forces, personnel who specialized in psychological operations, such as a “Col. Paddock (OSD/PSYOP),” a “Mr. Hunter (1st PSYOP Bn)”; a “Colonel Dunbar (1st PYSOP Bn),” and “Lieutenant Colonel Jacobowitz (DOD/PSYOP).”

In previously disclosed documents, Lt. Col. Daniel "Jake" Jacobowitz was listed as the executive officer inside the State Department’s Office of Public Diplomacy on Latin America, where the White House also placed five psychological warfare specialists from the 4th Psychological Operations Group at Fort Bragg, North Carolina.

The main job of these psy-ops specialists was to pick out incidents in Central America that would rile the U.S. public. In a memo dated May 30, 1985, Jacobowitz explained that the military men were scouring embassy cables "looking for exploitable themes and trends, and [would] inform us of possible areas for our exploitation."

The June 19, 1986, minutes of the working group stated that “Colonel Paddock reported that OSD/PSYOP has been working on some unclassified publications, mainly on Central American issues, in cooperation with State’s Office of Latin American Public Diplomacy.”

At the working group meeting on July 31, 1986, Col. Paddock passed out copies of a joint Pentagon/State Department publication, “The Challenge to Democracy in Central America,” which was then being disseminated to members of Congress, the Washington press corps and the American public.

The publication sought to portray Nicaragua’s leftist Sandinista government as a state sponsor of terrorism, a major propaganda theme that the Reagan administration was using to justify its covert support of the contra rebels, who themselves were infamous for acts of terrorism, including extra-judicial executions and attacks on civilian targets.

Chastising the Enemy

Despite the evidence that it was the Reagan administration that was knee-deep in propaganda, the psyop official, “Mr. Hunter” – whose fuller identity remained classified in the meeting's minutes – briefed the group on what he described as anti-U.S. “disinformation campaigns,” including “charges of immoral conduct by US troops in Honduras.”

In the world of Raymond’s psyop meetings, nearly every negative piece of news about U.S. activities in the world was dismissed as “Soviet active measures,” presumably even the fact that some U.S. troops operating in Honduras engaged in what surely could be called “immoral conduct.”

Bureaucratic deception was also part of the secret operations inside the NSC. In the mid-1980s, I was told by one senior NSC official that a key early document laying the groundwork for raising money for the contra war in defiance of a congressional prohibition was marked as a “non-paper,” so it would not be regarded as an official document (even though it clearly was).

Similarly, Raymond sent one Nov. 28, 1986, memo to an unnamed CIA officer reminding him to attend what Raymond called “the next non-group meeting.” So it appears that Reagan’s NSC sought to get around requirements for safeguarding historical records by circulating “non-papers” and meeting in “non-groups.”

Raymond’s domestic propaganda activities were explored by congressional Iran-Contra investigators in 1987. However, their findings faced fierce internal opposition from House and Senate Republicans.

In a bid for bipartisanship, House Democratic committee chairman Lee Hamilton agreed to a compromise in which a chapter on Raymond’s operation was dropped while a few segments were inserted elsewhere in the final report.

That meant, however, that the American people never got to read the chapter’s stunning conclusion: that the Reagan administration had built a domestic covert propaganda apparatus managed by a CIA disinformation specialist working out of the National Security Council.

“One of the CIA’s most senior covert action operators was sent to the NSC in 1983 by CIA Director [William] Casey where he participated in the creation of an inter-agency public diplomacy mechanism that included the use of seasoned intelligence specialists,” the chapter’s conclusion stated.

“This public/private network set out to accomplish what a covert CIA operation in a foreign country might attempt – to sway the media, the Congress, and American public opinion in the direction of the Reagan administration’s policies.”

Tracing the Origins

The 84-page "lost" chapter, entitled “Launching the Private Network,” traced the origins of the propaganda network to President Reagan’s “National Security Decision Directive 77” in January 1983 as his administration sought to promote its foreign policy, especially its desire to oust Nicaragua’s leftist Sandinista government. [There appear to have been several versions of this “lost chapter.” This one I found in congressional files.]

The chapter also cited a Jan. 13, 1983, memo by then-NSC Advisor Clark regarding the need for non-governmental money to advance the cause. “We will develop a scenario for obtaining private funding,” Clark wrote.

However, what the newly discovered documents from Raymond’s files make clear is that the initiative dated back to 1982 and was pushed more by Casey and his CIA associates than by the NSC advisor.

The “lost chapter” does explain how Reagan administration officials soon began crossing lines that separated an overseas propaganda program from a domestic propaganda operation aimed at U.S. public opinion, the American press and congressional Democrats who opposed contra funding.

“An elaborate system of inter-agency committees was eventually formed and charged with the task of working closely with private groups and individuals involved in fundraising, lobbying campaigns and propagandistic activities aimed at influencing public opinion and governmental action,” the draft chapter said.

The draft chapter doesn’t initially use Raymond’s name – presumably because his work at the CIA remained classified – but its description of the CIA officer in charge of the NSC-run propaganda operation clearly refers to Raymond.

According to the draft report, the CIA officer [Raymond] had served as Director of the Covert Action Staff at the CIA from 1978 to 1982 and was a “specialist in propaganda and disinformation.”

“The CIA official discussed the transfer with [CIA Director] Casey and NSC Advisor William Clark that he be assigned to the NSC [in June 1982] and received approval for his involvement in setting up the public diplomacy program along with his intelligence responsibilities,” the chapter said.

“In the early part of 1983, documents obtained by the Select [Iran-Contra] Committees indicate that the Director of the Intelligence Staff of the NSC [Raymond] successfully recommended the establishment of an inter-governmental network to promote and manage a public diplomacy plan designed to create support for Reagan Administration policies at home and abroad.”

Raymond “helped to set up an elaborate system of inter-agency committees,” the draft chapter said, adding:

“In the Spring of 1983, the network began to turn its attention toward beefing up the Administration’s capacity to promote American support for the Democratic Resistance in Nicaragua [the contras] and the fledgling democracy in El Salvador.

“This effort resulted in the creation of the Office of Public Diplomacy for Latin America and the Caribbean in the Department of State (S/LPD), headed by Otto Reich,” a right-wing Cuban exile from Miami.

Stiffing Shultz

Though Secretary of State George Shultz wanted the office under his control, President Reagan insisted that Reich “report directly to the NSC,” where Raymond oversaw the operations as a special assistant to the President and the NSC’s director of international communications, the chapter said.

“At least for several months after he assumed this position, Raymond also worked on intelligence matters at the NSC, including drafting a Presidential Finding for Covert Action in Nicaragua in mid-September” 1983, the chapter said.

In other words, although Raymond was shifted to the NSC staff in part to evade prohibitions on the CIA influencing U.S. public opinion, his intelligence and propaganda duties overlapped for a time as he was in the process of retiring from the spy agency.

And despite Raymond’s formal separation from the CIA, he acted toward the U.S. public much like a CIA officer would in directing a propaganda operation in a hostile foreign country. He was the go-to guy to keep this political action operation on track.

“Reich relied heavily on Raymond to secure personnel transfers from other government agencies to beef up the limited resources made available to S/LPD by the Department of State,” the chapter said.

“Personnel made available to the new office included intelligence specialists from the U.S. Air Force and the U.S. Army. On one occasion, five intelligence experts from the Army’s 4th Psychological Operations Group at Fort Bragg, North Carolina, were assigned to work with Reich’s fast-growing operation. …

“White House documents also indicate that CIA Director Casey had more than a passing interest in the Central American public diplomacy campaign.”

The chapter cited an Aug. 9, 1983, memo written by Raymond describing Casey’s participation in a meeting with public relations specialists to brainstorm how “to sell a ‘new product’ – Central America – by generating interest across-the-spectrum.”

In an Aug. 29, 1983, memo, Raymond recounted a call from Casey pushing his P.R. ideas. Alarmed at a CIA director participating so brazenly in domestic propaganda, Raymond wrote that “I philosophized a bit with Bill Casey (in an effort to get him out of the loop)” but with little success.

The chapter added: “Casey’s involvement in the public diplomacy effort apparently continued throughout the period under investigation by the Committees,” including a 1985 role in pressuring Congress to renew contra aid and a 1986 hand in further shielding S/LPD from the oversight of Shultz.

Casey even monitored personnel changes. A Raymond-authored memo to Casey in August 1986 described the shift of S/LPD – then run by neoconservative theorist Kagan who had replaced Reich – to the control of the Bureau of Inter-American Affairs, which was headed by Assistant Secretary of State Elliott Abrams, another prominent neoconservative.

Oliver North and Friends

Another important figure in the pro-contra propaganda was NSC staffer Oliver North, who spent a great deal of his time on the Nicaraguan public diplomacy operation even though he is better known for arranging secret arms shipments to the contras and to Iran’s radical Islamic government, leading to the Iran-Contra scandal.

The draft chapter cited a March 10, 1985, memo from North describing his assistance to CIA Director Casey in timing the disclosures of pro-contra news “aimed at securing Congressional approval for renewed support to the Nicaraguan Resistance Forces.”

However, the discarding of the draft chapter and the ultimate failure of the Iran-Contra report to fully explain the danger of CIA-style propaganda intruding into the U.S. political process had profound future consequences. Indeed, the evidence suggests that the Casey-Raymond media operations of the 1980s helped bring the Washington press corps to its knees, where it has remained most of the time through today.

To soften up the Washington press corps, Reich’s S/LPD targeted U.S. journalists who reported information that undermined the administration’s propaganda themes. Reich sent his teams out to lobby news executives to remove or punish out-of-step reporters – with a disturbing degree of success.

In March 1986, Reich reported that his office was taking "a very aggressive posture vis-à-vis a sometimes hostile press" and "did not give the critics of the policy any quarter in the debate." [For details, see Parry’s Lost History.]

Though Casey died in 1987 and Raymond in 2003, some U.S. officials implicated in the propaganda operations remain important Washington figures, bringing the lessons of the 1980s into the new century.

For instance, Elliott Abrams – though convicted of misleading Congress in the Iran-Contra Affair and later pardoned by President George H.W. Bush – returned as deputy advisor to George W. Bush’s NSC, where Abrams oversaw U.S.-Middle East policy.

Today, Kagan writes influential op-eds for the Washington Post and is a senior associate at the Carnegie Institute for International Peace. Oliver North landed a show on Fox News. Otto Reich was an adviser to John McCain’s presidential campaign in 2008.

Beyond the individuals, the manipulative techniques that were refined in the 1980s – especially the skill of exaggerating foreign threats – have proved durable. Such scare tactics brought large segments of the American population into line behind the Iraq War in 2002-03.

It took years and many thousands of deaths before Americans realized they had been manipulated by deceptive propaganda, that their perceptions had been managed.

In his book, What Happened: Inside the Bush White House and Washington’s Culture of Deception, Bush’s former White House press secretary Scott McClellan described Iraq War propaganda tactics that would have been familiar to Casey and Raymond.

From his insider vantage point, McClellan cited the White House’s “carefully orchestrated campaign to shape and manipulate sources of public approval” – and he called the Washington press corps “complicit enablers.”

The newly discovered documents in Raymond’s files at the Reagan Library offer a glimpse at how these manipulative techniques took root.

Robert Parry broke many of the Iran-Contra stories in the 1980s for the Associated Press and Newsweek. His latest book, Neck Deep: The Disastrous Presidency of George W. Bush, was written with two of his sons, Sam and Nat, and can be ordered at neckdeepbook.com. His two previous books, Secrecy & Privilege: The Rise of the Bush Dynasty from Watergate to Iraq and Lost History: Contras, Cocaine, the Press & 'Project Truth' are also available there. Or go to Amazon.com.  

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