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f w? i 21 December 1954 *> * c I 4* * i MEMORANDUM JORs. Director of Central Intelligence SUBJECT s Project 1KULTRA, Subproject 35 • i 1. While the Director’s statutory authority to expend funds for confidential purposes is not limited by law, we believe that a gift of Government funds as such would exceed the intent of the Congress in granting that power. However, where a gift is made for the pyprAss purpose of producing something of value to this Agency which cannot otherwise be obtained and there is a reason- able expectation that the value may be received, the gift may in r : v : effect be an expenditure for proper official purposes. 4 2. In Subproject 35, it is stated that. the donation in . question would achieve certain ends desired by TSSr There seems • to be no question that those ends would be advantageous, so the main questions appear to be whetherithey could not be attained — r by more direct, normal methods, and, if not, whether the return ; is necessary and reasonable in relation to the donation. 3. We are in no position to review the requirements of TSS or to appraise the advantages that would result from this project. — We do not coaraent, therefore, on the value received if .the project results in the benefits foreseen. We feel ve should comment on factors affecting the probability of achieving those ends, in a legal sense, there is little or no control. Once the funds ore donated, the individual, his foundation, or the hospital could conceivably refuse to work for us or allow us the use of the facilities. u l. i . iA 1 I '3 if :4 “1 4. Practically, the control seems to be established as well as circumstances permit. Certainly, as long as thq individual is alive and in his present position, we have every reason to expect his complete cooperation in the future as in the past, unless through some act or fault of our own he is alienated. Even in the event of his death or incapacity, there appears to be a reasonable • . .f toansraded toj by authority of; 137475 A •date: June 1977 X I'ilD'Sl; CL BY 137475 t - Copy # 1 of 1 copy