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Mr. Bundy

-2- March 4, 1965

attached memo on the subject. Another reason - State does not want to compromise its position on Artime (i.e., If you give aid to RECE, how can you stop aid to Artime?).

State and DOD will probably propose that, in turning down RECE, we give them $17,000. The RECE people apparently had to tap a program fund of its small contributors to keep going administratively over the last couple months when Bosch cut them off; they want to return this money to the small contributors. Arguments in favor of giving them the money are: (a) it will lessen the shock of giving RECE a negative reply, (b) they will not look bad among the exiles (we don't want them to look bad because they are "good guys"), and (c) part of RECE's problem has not been their fault. We have not been able to give RECE as prompt an answer as we would have liked.

I continue to be in favor of not getting involved with RECE; I agree that $17,000 is a small price to pay for a kiss-off.

4. Keating Gimmick - Both DOD and State are cold to the idea of having Keating (I understand this now may be changed to Donovan) stir up trouble between the Soviets and the Cubans. DOD feels that such goings-on might be interpreted as some sort of Vietnam play. State feels that such a man wouldn't get received at a high level; also, there are other ways to do the job if it needs doing.

While I admire CIA's ingenuity and I sincerely think we should keep them invention-minded, I must say that this one sounds like a Rube Goldberg contraption. I am against it.

5. CIA's Paramilitary Capability - Both DOD and State will probably oppose CIA's proposal to drop its paramilitary capability. I agree with State and DOD that, with the present world situation as it stands, this is a good capability to keep on hand if we possibly can. I would agree to an abandonment of this capability only if it were demonstrated that we could crank it up again in a very short space of time.

/s/ Gordon Chase

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