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ROUTING AND RECORD SHEET
SUBJECT: (Optional)
FY-90 Approval of Operational Activity-- QRPLUIvI13 /6 PNO.FROM c
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EXTENSION
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DATE
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DATE OFFICER'S COMMENTS (Number each comment to show from whom10 whom. Draw a line across column offer each comment.)
RECEIVED FORWARDED
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APPROVALEUNIIIII PERIOD AMT THIS ACTION FY TOTAL FUNDS AUTHORIZATIONMERCESSESEESE FROM
01 OCT j97-7-91--,TO
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APPROVALPERIOD AMT THI ACTION FY TOTAL FUNDS AUTHORIZATION
FROM .•OCT 1989'
TO
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01 19 SAPPROVING AUTHORITY (Title& Signature) FOR DDO USE ONLY DATE
'EXEMPT FROMP/S REVIEW
COMPARTMENTEDP/S REVIEW
SECRET'
7 December 1989
MEMORANDUM FOR: C/ORMS/OG
INFORMATION: C/PPS/SEO/SIB
FROM:Chief, Central Cover Staff
SUBJECT: Approval of FY 1990 OPACT Renewal for QRPLUMB
1. The Central Cover Staff concurs in the FY 1990 OPACTrenewal for QRPLUMB. We note PPS's continuing steps to convertthis OPACT from a proprietary to a controlled subsidy, whichfollow formal DDO approval of those plans as stated in the FY 1989OPACT renewal. Once the ownership of the corporation has beentransferred, we ask that the new Administrative Plan be preparedfor this controlled subsidy.
2. Also, should PPS decide to administer the relationshipsbetween QRPLUMB and the London office and QRPLUMB and the Munichoffice as non-controlled subsidies, we ask that a Fiscal Plan beprepared.
WARNING NOTICEINTELLIGENCE SOURCESAND METHODS INVOLVED
CL BY SIGNERDECL OADRDRV COV 2-87
SECRET
APPROVAL - FY 90 OPERATIONAL ACTIVITY - QRPLUMB
ACCOMPLISHMENTS
While publishing remains the primary objective of QRPLUMB, FY89 is notable for the increase in support to the politicallyactive informal groups in Ukraine, particularly to the moderateand democratic Ukrainian Helsinki Group. QRPLUMB provided 15video camera/recorders to cooperative Ukrainians who filmeddemonstrations in Ukraine for distribution to sympathetic Westernnews media and re-infiltation. Other equipment provided includesone telefax, five computers, two Xerox machines, and 10 copies ofUkrainian language software. QRPLUMB operates a fax machinebetween its London office and the Ukrainian Helsinki Grouppermitting timely exchange of news information.
The QRPLUMB monthly journal is gaining professional respectinside Ukraine with an estimated 50 percent of the press run of1,800 per issue reaching the USSR. A growing number are maileddirectly to the Soviet Bloc. Four issues of the journal arereprinted in Poland for direct distribution to the Ukrainianpopulation in Poland who in turn send copies to Ukraine, a verycost effective activity. Other publications include a semi-annual journal in Russian which reports on Ukrainian affairs,reprints of news articles into Ukrainian for distribution andbooks of high interest to Ukrainian readers.
The Ukrainian elections offered an opportunity to develop newcontacts among politically active groups. Although the shorttime between the announcement and the voting for the People'sCongress limited QRPLUMB opportunities, the program served as anintroduction for later elections.
PLANS
A budget increase will fund QRPLUMB support to moderateinformal groups and candidates in the regional election for theUkrainian Supreme Soviet, scheduled for the spring of 1990.QRPLUMB will provide training in the use of cost-effective silk-screen presses and supply materials, particularly paper, to aidmoderate candidates. All support must be direct to Ukrainerather than from Poland or other countries to avoid any Sovietattempt to accuse "outside interests" of interfering in internalaffairs.
QRPLUMB is considering holding a conference in Budapest on thehistory of Ukraine, and an increase in the print run of theQRPLUMB journal in Poland.
SECRET
SECRET
QRPLUMB continues to consider moving most of its non-publication operations to a European venue. Both London andMunich offices will be expanded by one person and there will bemore frequent travel to Europe by QRPLUMB principals.
The budget includes an increase for purchases of computers,fax machines, and printing equipment for infiltration intoUkraine. Funds will be provided separately as operationalexpenses (SOC 2555) rather than through the organization (SOC2570) and accounted for by receipt. Any additional funds beyondthose budgeted will be provided under proposed OperationalActivity C
Conversion of QRPLUMB to a controlled subsidy will reduce theadministrative burden and permit QRPLUMB to solicit legitimateresearch contracts from the private sector. This will notrelieve the financial requirements, however, and QRPLUMB has beenadvised to hire a full time bookkeeper to work directly under theTreasurer.
PROBLEMS
A recent audit has identified some accounting deficiencies inthe New Jersey and London offices which must be corrected. Theaddition of a full-time bookkeeper will help and clearedaccounting professionals will be brought in to work out a morepractical accounting procedure. A new computerized accountingsystem will be introduced. The London Office may be converted toa non-controlled subsidy to relieve the security problem ofaccounting and auditing an activity where we do not have directcontact with the principal agent because of operational reasons.
• Relocation of major portions of non-publishing operations toEurope is presenting some difficulties. London, the most obviouslocation because of an already active, albeit small, office andpresence of a young Ukrainian community, would necessitateconcurrence from the liaison services. The Ukrainian communitiesin Munich and Paris are much smaller and of an older generation.QRPLUMB has been tasked to look at other venues.
SECURITY
There have been no security problems during the current year.A counterintelligence survey is in process and is expected tobegin the review and coordination process in early August.
SECRET
SECRET
SOURCE OF FUNDS
Approval is requested for funds in the amount ofC,for FY 90 (FAN 28-4544). Funds in the amount of areavailable in the PPS budget for FY 90. FY 1991 and 1992 fundsare requested in the amount ofil_ for each year.
ACCOUNTABILITY
Funds are accounted for in accordance with Agency regulationsfor regular operational funds. A Fiscal Plan has been preparedand is in the process of coordination.
As of 1 June,t ;)(75.8%) has been obligated (FAN28-4544). It is anticipated that all funds will be obligated inFY 89.
BUDGET
SOCAgency OPS - 2552Subsidy - 2570
c2FY 89 FY 90 FY 91 FY 9C_
E c_Total QRPLUMB Budget C:1
PROPRIETARY BUDGET
Cash on hand 135,287
140,000
200,000 200,000
C._ 71 CI. 0 IJ75,000
Income 1,208,000
Fixed ExpensesSalaries and Benefits 370,000Rent and Admin 150,000
Total Fixed Expenses 520,000
Operating Expenses 683,287
TOTAL Expenses 1,203,287
Cash Balance 140,000
IncomeSubsidy (2570)Other Income 175,000 175,000 175,000
1,512,000 1,572,000 1,572,000
480,000 500,000 500,000165,000 170,000 170,000
645,000 670,000 670,000
807,000 902,000 902,000
1,452,000 1,572,000 1,572,000
200,000 200,000 200,000
SECRET
SECRET
01 4 APR 199a
MEMORANDUM FOR: Deputy Director for Operations
FROM: CZ :1,Chief, Operations and Resource Management Staff
SUBJECT: Approval of OPACT QRPLUMB for FY 1990
1. Description: OPACT QRPLUMB is a PPS proprietarylocated in New York with affiliates in London, Paris, andMunich. It is a publisher and distributor of Ukrainianlanguage books, journals, newsletters, and magazines. It alsoproduces and infiltrates pamphlets, leaflets, and videos intothe Ukraine. The purposes of QRPLUMB are to provideintellectual and moral support for those in the targetedaudience working towards the moderation of the Soviet systemand to encourage liberalization among the Ukrainianpopulation. QRPLUMB is an NSC program.
2. Authority: This activity is authorized by theConsolidated Presidential Findings of 7 June 1978 and7 March 1979 and by the Memorandum of Notification of 3 August1987. This activity was approved by the ADDO on 24 March 1989for FY 1989.
3. ORMS Comments: QRPLUMB continued its prolificpublishing schedule, printing nine different journals,newsletters and magazines, and four books. One journal devotedan issue to the Millennium of Christianity of the RussianOrthodox Church, which was (like other issues and QRPLUMBpublications) infiltrated into the Ukraine; it was so wellreceived that plans are under way to reprint the issue asoriginally produced, plus an additional 2,000 copies in aminiature version for future infiltration. The affiliatedpress agency in London contributed a number of articles andpress releases focused on dissident activity, and the videoproject picked up steam with camcorders infiltrated into theUkraine to assist in plann.ed future video productions. Awarethat travel between Poland and the Ukraine has become easier inthe past year, QRPLUMB has begun utilizing that route for theinfiltration of materials, including written texts, computers,and camcorders. The Ukrainian Peace Committee, a part of
CL BYC.DECL OADRDRV HUM 4-82
SECRET
SECRET
QRPLUMB, publishes four journals on the activities of variousworldwide peace groups, and remains active in the human rightsarena. Members of the UPC attended the Krakow Human RightsConference in August 1988.
The successes of this project notwithstanding, NSCguidance, as of 9 January 1990, has directed that this programbe "weaned" away from Agency control or terminated within twoto three years. PPS has since begun exploring various methodsto accomplish this directive in a secure and effective manner.The nature of the project, its location within the UnitedStates, the complications in attempting to find outside funderswhile the project is still under Agency control/funding, and USpolicy guidance all combine to create a complex situation.Various options were explored at a review of QRPLUMB by theProprietary Review' Board on 15 February 1990, resulting in anagreement by PPS to prepare, in consultation with CCS and OGC,an option paper which will discuss in depth the differentpossibilities. The paper will require several months ofpreparation and study before a decision on how best to end ourrelationship with QRPLUMB can be made.
4. Responses To FY 1988 Recommendations: PPS hasaddressed appropriately in the FY 1989 OPACT the CI concernsthat were raised in last year's review. A CI review wascompleted in November 1989 and found no serious present orpotential problems.
5. Funding and Accountability: The Admin Plan for thisOPACT was rewritten in November 1988 and is still in thecoordination process with Headquarters elements.
6. ORMS Recommendation: This program has the capabilityto reach and influence a key segment of the Soviet Union'spopulation. ORMS r p romm p ndc that QRPLUMB be approved in theamount requested, , total expenses for FY 1990,subject to availability of funds in the 28 February 1990Operating Budget. In the FY 1991 QRPLUMB OPACT submission, PPSshould detail their progress in reaching a suitable and secureoperational plan for the "weaning" or termination of thisproject.
2(0 skit
SECRET /0 ,209-k/